Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
The Nifty index witnessed sideways momentum throughout the day but the index managed to close in green on March 22. The index remains in a buy-on-dip mode as long as the index stays above 17,000.
The immediate hurdle on the upside is at 17,200 where the highest open interest is built up on the Call side. The index once surpassed the resistance will witness a sharp move on the upside toward the 17,500 level.
The Bank Nifty index has remained mostly sideways as the investors preferred waiting until after the Federal Reserve meeting on the rates and the follow-up commentary, which is more important. On the higher end, the index has found resistance at the 14 DMA (40,166) during the day's trade on Wednesday.
The momentum indicator is in bullish crossover. A decisive breakout above 40,000 may induce a rally in the index, above which the index may move up towards 40,500-41,000 over the near term. On the lower end, support lies at 39,500.
Here are three buy calls for short term:
Aditya Birla Capital: Buy | LTP: Rs 156 | Stop-Loss: Rs 150 | Target: Rs 163-167 | Return: 7 percent
Aditya Birla Capital is trading in a sharp uptrend with higher high and higher low formations intact on the daily chart. The stock is on the verge of a breakout from a Cup and Handle pattern.
The stock lower-end support is placed at Rs 150 and the potential upside targets are Rs 165-170. The momentum indicator RSI (relative strength index) has entered the zone of 60 which confirms the buy signal.
Strides Pharma Science: Buy | LTP: Rs 285 | Stop-Loss: Rs 265 | Target: Rs 300-310 | Return: 9 percent
The stock has shown a sharp reversal on the daily chart with a rise in volumes. The stock has surpassed the previous 5-day high and the momentum indicator RSI has given a bullish crossover which confirms the strength of the stock.
The stock remains in buy mode with support at Rs 265 which will act as a cushion for the bulls.
Varun Beverages: Buy | LTP: Rs 1,355 | Stop-Loss: Rs 1,320 | Target: Rs 1,400-1,430 | Return: 6 percent
The stock has retested the falling trend line on the daily chart before going higher. On the higher end, the index has found resistance at the 14DMA (Rs 1,334.65) during day's trade on March 22.
The momentum indicator is in bullish crossover. A decisive breakout above Rs 1,360 may induce a rally in the index, above which the index may move up towards Rs 1,430 over the near term. On the lower end, support lies at Rs 1,320.
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