Nifty has closed at 5-month high, recovering completely from the selloff it had witnessed in March 2020.
The current short-term average is placed at 11,280 levels and it would act as strong support. On the higher side, 11,850-12,000 would act as strong resistance from the current levels.
Bank Nifty would continue to outperform and there is enough room left for it to test its 200-day average placed at 25,150 levels.
Nifty Midcap 100 index has resistance near its 200-week and 21-months average and it could witness some minor pullbacks on the downside from the current levels after a sharp outperformance of 11.6 percent for the current month.
There could be some minor profit-booking to test the short-term averages on the downside.
Here are three buy calls for the next 3-4 weeks:
Axis Bank | Buy | LTP: Rs 473.50 | Target price: Rs 545 | Stop loss: Rs 424 | Upside: 15%
The stock moved upwards after taking support at the previous week’s lows. Due to recent reversal in the prices, the key technical indicator-RSI and MACD- witnessed identical turnaround from their lower levels.
In case of any negative surprise, prior swing low will continue to work as a key reversal point for the stock.
Coal India | Buy | LTP: Rs 140.55 | Target price: Rs 161 | Stop loss: Rs 124 | Upside: 15%
The stock has resumed its rising trend after a couple of months of underperformance. Last week, the stock has given breakout from its 100-day SMA and stayed firm above that.
The stock’s key technical indicators are in buy mode and this could lead the stock towards its 200-day SMA.
HDFC | Buy | LTP: Rs 1,863.50 | Target price: Rs 2,085 | Stop loss: Rs 1,720 | Upside: 12%
The stock has given a breakout from its short and medium-term averages and we expect an upward breakout from the current levels.
It has made higher bottoms on weekly charts and RSI is cutting upwards from the lower end which confirms our positive outlook.
(The author is Senior Research Analyst at Reliance 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.