As benchmark indices are trading in unchartered territory, every 100 points upside should be treated as immediate resistance. At the current levels, this resistance is placed at 15,800.
Considering the Fibonacci ratios, we do not see any major hurdle before 16,000. However, the move would continue to be slow and steady, even if we witness said levels on Nifty in the near term.
One key factor is the significant drop in India VIX which is back to pre-COVID levels. This bodes well for the bulls.
The levels of 15,600–15,525–15,450 are the key support levels. Only a handful of index heavyweights are giving some notable moves while the real action still continues in the broader market.
Stocks from the cash segment are roaring so it is advised to stick to this approach.
We reiterate when the market moves in such a manner, it’s better not to get complacent. It would be a prudent strategy to avoid aggressive leveraged bets, especially overnight, because any in-between hiccup may spoil your short-term trading journey.
Here are two buy calls for the next 2-3 weeks:
A lot of midcap counters that did not participate in the rally last year have started to catch up; this stock is one of them.
In the last few weeks, we witnessed a good base building in this stock and the volumes have been extraordinary in the up move from the recent low.
For the last three months, the stock had been struggling around Rs 310 and recently it breached this hurdle.
In this course of action, prices managed to surpass the sturdy wall of 200-day SMA convincingly - which is an encouraging sign.
Grasim Industries | LTP: Rs 1,507 | Target price: Rs 1580 | Stop loss: Rs 1450 | Upside: 5%
We have seen a stupendous move in this stock since March 2020 lows. It has already given nearly three-fold returns in merely 14 months, that too without giving any meaningful correction.
In the last couple of months, the stock went through a good time-wise correction and a minor price correction, but now we can see it resuming its upward trend as it unfolds the next leg of the rally.
Friday’s upward move led the stock to its new record highs along with higher than average daily volume.
In addition, the RSI-smoothened oscillator has crossed the 70 mark, which may provide impetus to the move.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)
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