The levels of 14,900–15,000 continue to remain a sturdy wall for Nifty and until we surpass it, major heavyweights may not give any sustainable up-move.
On the lower side, 14,700 followed by 14,550 are immediate supports. The deciding factor in days to come has to be the financial space.
For the last couple of weeks, the banking index has been hovering around its strong support zone of 32,200 – 32,400 which is the breakout point of the Budget day as well as the 89-day exponential moving average.
It has managed to hold this till now and if any recovery has to take place, there will not be a better point than this.
But, if any bottom (short or long-term) is formed, bulls may not get many opportunities to make a comeback.
The more it challenges any particular support, the higher it creates the possibility of breaking it.
Hence, all eyes would be on this space as it is likely to dictate the near-term trend of the market.
Here are two buy and one sell calls for the next 2-3 weeks:
Balrampur Chini Mills | Buy | LTP: Rs 234 | Target price: Rs 255 | Stop loss: Rs 213 | Upside: 9%
The tide has turned upwards for this counter as well as the cyclical commodity sugar after May 2020.
The stock has been witnessing an unstoppable steep rise for nearly 10 months and it is still not done yet.
In the week gone by, we could see yet another breakout taking place after coming out of its recent congestion zone.
On such breakout points, volume plays a vital role and in this case, we can see sizable activity on the volume front, providing credence to the move.
We recommend going long around Rs 230 – 226 for a target of Rs 255 in the coming days.
Pfizer | Buy | LTP: Rs 4,830 | Target price: Rs 5,100 | Stop loss: Rs 4,550 | Upside: 6%
The entire pharma space underwent a decent time-wise as well as price-wise correction over the past two months.
After a brief pause, it seems to have resumed its larger degree uptrend.
Most of the bigger names from this space have already moved quite well in the last 5 – 6 trading sessions, but Pfizer remained quiet all this while.
Last Friday, the stock finally took off to come out of its recent consolidation range. In this process, it managed to convincingly traverse two key moving averages - 89-day exponential moving average and 200-day simple moving average along with more than average daily volumes.
We recommend going long on a small dip towards Rs 4,750 for a target of Rs 5,100.
Bajaj Finance | Sell | LTP: Rs 4,878 | Target price: Rs 4,600 | Stop loss: Rs 5,010 | Downside: 6%
The financial space has been the real drag for the last one-and-a-half month.
For the last few days, this stock has been hovering around its 89-day exponential moving average on the daily chart.
Last Friday, the stock failed to hold its support as we witnessed a decisive breakdown below Rs 4,900.
Looking at this price development, further weakness in the coming days cannot be ruled out.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)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.