Nifty has maintained its higher top higher bottom formation on the monthly charts but has formed a 'Doji’ candle pattern at the lifetime high levels which shows some fatigue in the uptrend.
The benchmark index has been moving in a range of 15,430–15,962 for the last few weeks.
The key support levels to watch out for in the short term are 15,430 and 15,145. On the upside, the key resistance level is 15,962.
We believe that the long-term bullish trend remains intact. If Nifty sustains above 15,962, it may move towards the 16,687 level; till then it will be fluctuating between 15,430 – 15,962.
Here are three buy calls for the next 2-3 weeks:
Asian Paints | LTP: Rs 3,101.30 | Target price: Rs 3,702 | Stop loss: Rs 2,965 | Upside: 19%
This stock has been forming a higher top higher bottom pattern on all timeframes - monthly, weekly and daily - which shows a strong positive undertone for the medium to long term.
On the weekly timeframe, this stock has given an ‘A-B-C’ pattern breakout and also formed a fresh lifetime high at Rs 3,179.
On the daily charts, the stock has given a ‘descending channel’ pattern breakout with huge volume confirmation which indicates the stock is ready for the next bull run.
RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher, indicating strong positive momentum.
The immediate resistance for the stock is placed at Rs 3,393, followed by Rs 3,702. The key support levels are Rs 2,965 and Rs 2,870 level.
One can buy the stock at the current levels with a target price of Rs 3,393, followed by Rs 3,702 and a strict stop loss of Rs 2,965 on a closing basis.
Berger Paints India | LTP: Rs 854.50 | Target price: Rs 1,015 | Stop loss: Rs 820 | Upside: 19%
This stock has been maintaining a bullish pattern of higher top higher bottom on the monthly timeframes since September 2020 which shows a strong positive undertone for the longer term.
It has been giving a consolidation breakout with volume confirmation for the last seven months, indicating strong positive sentiments for the medium to long term.
On the daily charts, the stock has been continuously sustaining above its 20-day simple moving average (SMA) and has formed a ‘CIP’ formation which indicates the strong positive nature of the stock for the short to medium term.
RSI plotted on the medium-term can be seen moving higher and sustaining above 60 level, indicating strong momentum in the current up move.
The immediate resistance for the stock is placed at Rs 943, followed by Rs 1,015. The key support levels are Rs 820 and Rs 770.
One can buy the stock at the current level for the target of Rs 943, followed by Rs 1,015 with a strict stop loss of Rs 820 on a closing basis.
On the monthly charts, the stock has maintained its strong bullish mode with the formation of higher top higher bottom formation and also sustaining at lifetime high levels.
On the weekly charts, it has taken support at 20-week SMA and it is also giving consolidation breakout for the last four weeks.
RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher.
The resistance for the stock is placed at Rs 3,526, followed by Rs 3,757. The key level to watch out for on the downside is Rs 3,251, followed by Rs 3,030.
One can buy the stock at the current levels for the target of Rs 3,526, followed by Rs 3,757 with a strict stop loss of Rs 3,251 on a closing basis.
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