For the coming sessions, Nifty should take a breather and hold in the range of 11,850-12,050 after witnessing highly volatile moves from the last few days.
After slipping toward three month low, Nifty recouped most of the losses of Budget day and managed to reclaim 11,950 levels on local bourses with a closing well above its 100-days exponential moving average on a daily interval.
Bank Nifty also witnessed smart recovery from its recent lows and closed well above 30,650-mark, supported by a sharp rise in private banks like HDFC Bank, Kotak Mahindra Bank and ICICI Bank along with gains in some of the financial names.
On the derivatives front, heavy put writing was observed at 11,800 and 11,900 put strike while 12,000 call strike holds maximum open interest build up in the weekly contract.
For the coming sessions, Nifty should take a breather and hold in the range of 11,850-12,050 after witnessing highly volatile moves from the last few days. However, traders should keep stock-specific action on the radar on the back of the ongoing result season.
Here are three buy calls for the next 3-4 weeks:
Asian Paints | Buy | LTP: Rs 1,896.75 | Target price: Rs 2,050 | Stop loss: Rs 1,780 | Upside: 8%
For the last four months, the stock has been trading in a broader range of Rs 1,680-1,850 with prices holding well above its long-term moving averages on daily and weekly charts.
This week, the stock has witnessed a fresh breakout with marginally higher volumes after a prolonged consolidation and tested its 52-week high.
The breakout suggests further upside into the prices towards new highs.
Cholamandalam Investment and Finance Company | Buy | LTP: Rs 332.50 | Target price: Rs 357 | Stop loss: Rs 315 | Upside: 7%
After taking support at its 200-days exponential moving average on the daily charts, placed around Rs 287, the stock recovered sharply and tested Rs 330-mark within a short span of time.
However, since then, some consolidation into the prices can be seen within a range of Rs 310-330.
However, this week, we have observed fresh breakout into the prices after a prolonged consolidation with the long build-up into the prices from the derivative front as well.
Lux Industries | Buy | LTP: Rs 1,494 | Target price: Rs 1,670 | Stop loss: Rs 1,390 | Upside: 12%
The stock has been consistently maintaining its bull trend and seen trading in a rising channel with the formation of a higher high and high bottom pattern.
At the current juncture, once again the stock has formed a rounding bottom pattern and is on the verge of a fresh breakout above the near-term resistance level of Rs 1,500 on the shorter timeframe.
The positive divergences on the secondary oscillators suggest a further up move into the prices as prices are hovering well above its short and long-term moving averages.
(The author is Senior Technical Analyst at SMC Global Securities)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.