On the weekly timeframe, we can spot that the prices are forming lower top lower bottom formation and trading near a five-week low. However, it is sustaining just above the upward slopping trend line which has been forming since June 2022.
The Nifty, on the daily charts, has corrected from the record high level and sustained below its 20-day SMA (simple moving average) since the last five days, indicating a weak undertone of the index for the short to medium term.
On the indicator front, the RSI (relative strength index) plotted on the daily timeframe is moving downward and sustaining below 45 levels which shows lack of positive momentum.
The Nifty has immediate resistance placed at 18,670 (multiple touch points) followed by 18,887 (life-time high) levels. The downside support for the index is placed at 17,959 (previous month low) followed by 17,800 levels.
By looking at overall trend and evidence supported by indicator, we feel that the Nifty will move towards 17,959 levels followed by 17,800 mark. Our bearish view will be negated if the Nifty sustains above 18,670 mark.
Here are three buy calls for next 2-3 weeks:
UTI Asset Management Company: Buy | LTP: Rs 885 | Stop-Loss: Rs 789 | Target: Rs 1,105 | Return: 25 percent
UTI AMC, this week, has surpassed the bearish trend line which the prices respected since September 2021. This signs towards the reversal from the prior downtrend.
The stock in the latest trading week has given a breakout from the double bottom pattern, which confirms the reversal to the upside from prior downtrend.
The breakout is confirmed as it is accompanied by high volumes and a Gap.
The RSI on the weekly timeframe have shown a breakout which reflects the rising momentum of the prices.
Going ahead, we expect the prices to move Higher till the level of Rs 1,105 where the stop-loss must be Rs 789 on the closing basis.
Abbott India: Buy | LTP: Rs 21,548.50 | Stop-Loss: Rs 19,950 | Target: Rs 23,934 | Return: 11 percent
Abbott India has surpassed the swing high of Rs 20,900.80 (August 1, 2022), this initiates the formation of Higher High, Higher Low post the correction from October 2021.
The stock in the latest trading week has given a breakout from the Cup & Handle pattern, which confirms the reversal to the uptrend.
Prices on the daily timeframe are continuously hovering around the upper Bollinger band, indicating rising volatility of the prices.
RSI on the daily as well as on the weekly timeframe has sustained well above 50 mark reflecting strong momentum of the trend.
Going ahead we expect the prices to go higher till the level of Rs 23,934 where the stop-loss must be 19,950 on the closing basis.
Cipla: Buy | LTP: Rs 1,128 | Stop-Loss: Rs 1,070 | Target: Rs 1,255 | Return: 11 percent
Cipla has maintained its higher top higher bottom formation and formed CIP (change in polarity) pattern at Rs 1,080 levels and bounced back indicating strong positive undertone of the stock for the short to medium term.
On the daily charts, the stock has formed double bottom price pattern near Rs 1,080 mark and sustained above its 20-day SMA.
The stock has given a breakout of downward slopping trend line with volume confirmation indicating positive strength of the stock.
The RSI plotted on the weekly and the daily time frame can be seen placed above the 55 mark and moving higher, indicating expanding bullish momentum in the prices.
Going ahead we can expect the prices to move higher towards Rs 1,185 followed by Rs 1,255 levels. The stop-loss for the setup would be Rs 1,070.
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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