On the monthly as well as on weekly charts, the Nifty is maintaining its higher high, higher low formation, indicating a bullish undertone in the prices.
Prices on daily time frame have sustained above 20 days SMA (simple moving average), which is acting as a variable support to the prices.
RSI (relative strength index) plotted on the Daily and the weekly timeframe is above 50 mark which reflects the strong momentum in the index.
The index has its immediate support placed at the level of 17,706 (20 days SMA), 16,380 (gap support). On the other hand, the resistance is placed at the level of 18,150 (key resistance) followed by 18,350 (January 2022 high).
Looking at the overall chart pattern, we feel that the overall trend is positive and the index may attempt to go higher till the levels of 18,150 and 18,350. Our bullish view would be negated if we see prices sustaining below the level of 17,706.
Here are three buy calls for next 2-3 weeks:
Max Healthcare Institute: Buy | LTP: Rs 439.55 | Stop-Loss: Rs 406 | Target: Rs 518 | Return: 18 percent
Looking at the weekly timeframe of Max Healthcare Institute, we can observe that the stock had a strong uptrend since November 2021. But post January 2022, the stock made a base around Rs 350 levels.
In the latest week, the stock has witnessed a breakout from Double Bottom pattern, indicating a beginning of the trend on the upside.
Bollinger band on the daily timeframe have started to expand which points towards the rising volatility of the prices for upside move.
Momentum indicator RSI is sustaining above 50 mark on both daily as well as on weekly timeframe which reflects the strong momentum in the prices.
Going ahead, we expect the prices to go higher till Rs 518 level, where the stop-loss must be Rs 406 on the closing basis.
Deepak Nitrite: Buy | LTP: Rs 2,230.35 | Stop-Loss: Rs 2,045 | Target: Rs 2,600 | Return: 16 percent
Looking at broader picture of Deepak Nitrite, prices showed a bounce from the 50 percent Fibonacci retracement level of the advance from Rs 311 level (March 2020) till Rs 3,020 (October 2021).
The stock in the latest week have given a breakout from the Cup & Handle pattern, which tells the beginning of the trend on the upside.
The breakout is confirmed with the higher volume & Gap on the daily charts near Rs 2,185 mark.
Prices have sustained above Upper Bollinger band on the daily charts that tells the volatility for the prices are rising for up move.
RSI on the daily timeframe have shown a range shift which shows the breakout on the pattern with strong momentum.
Going ahead, we expect the prices to go higher further till the level of Rs 2,600 and stop-loss to be placed at Rs 2,045 level on strictly on the closing basis.
Bajaj Holdings & Investment: Buy | LTP: Rs 7,110.60 | Stop-Loss: Rs 6,400 | Target: Rs 8,610 | Return: 21 percent
On the weekly timeframe we can spot that the overall trend in the prices are on the upside. While in the correction post December 2021, the stock did not get into the lower low, lower high formation which shows the bullish undertone of the stock.
The stock in the latest week have given a breakout from the Rounding Bottom pattern, which tells the beginning of the trend on the upside.
The breakout is confirmed by high volumes.
Bollinger band on the daily timeframe have started to expand which points towards the rising volatility of the prices for upside move.
RSI is sustaining above 50 mark on both daily as well as on weekly timeframe which reflects the strong momentum in the prices.
Going ahead we expect the prices to go higher till Rs 8,610 level, where the stop-loss must be Rs 6,400 on the closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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