In a resilient recovery, the Nifty index closed with a notable 0.59 percent uptick at at 21,743 on February 13, a day after a major sell-off. The rebound received substantial support from heavyweight Reliance Industries, propelling the index to a 52-week high of Rs 2,958, and positive global market trends.
From a technical perspective, the daily chart shows a bullish candle formation, with the ADX (average directional index) and MACD (moving average convergence divergence) indicators maintaining a neutral stance. Caution is recommended in initiating new long positions until the index surpasses the crucial 21,950 levels, representing significant resistance.
Weekly analysis indicates the index hovering below the middle Bollinger band, with potential support identified in the 21,550-21,500 zone.
Bank Nifty concluded the session with a 1.38 percent gain at 45,502. The index consolidated within a narrow range over the last three sessions, with 44,600 as immediate support. A breach of this level may trigger further selling, while surpassing the 46,200-mark could propel the rally toward 47,000. The 50-day simple moving average serves as immediate resistance, and the RSI (relative strength index) at 45 reflects ongoing weakness.
Here are three buy calls for next 2-3 weeks:
Max Financial Services: Buy | LTP: Rs 979 | Stop-Loss: Rs 930 | Target: Rs 1,060 | Return: 8 percent
MFSL exhibits a strong bullish stance, surpassing previous resistance levels and indicating robustness. The stock's trading position above the 50-day simple moving averages signifies substantial price support. Positive crossovers in RSI and MACD, emphasize sustained bullish momentum.
Weekly charts show the price consistently above the middle Bollinger band reinforcing the overarching bullish trend. These indicators collectively suggest a favourable outlook, supporting the notion of continued positive momentum and potential for further upward movement.
Hence, based on the above technical structure, one can initiate a long position at CMP of Rs 979.20 for a target price of Rs 1,060. The stop-loss can be kept at Rs 930.
Havells India: Buy | LTP: Rs 1,363 | Stop-Loss: Rs 1,300 | Target: Rs 1,480 | Return: 9 percent
The stock observed on a weekly chart maintains a positive bias, relying on the support of the middle Bollinger band. On the daily chart, it exhibits a pattern of higher highs and higher lows, affirming an upward trajectory. The stock has established a robust support base around Rs 1,320 levels and continues to sustain, trading above both the 20 and 50 simple moving averages.
Notably, the daily Stochastic momentum indicator reflects a positive crossover, further enhancing the bullish sentiment surrounding the stock's price action.
Hence, based on the above technical structure, one can initiate a long position at CMP of Rs 1,363 for a target price of Rs 1,480. The stop-loss can be kept at Rs 1,300.
ICICI Lombard General Insurance: Buy | LTP: Rs 1,631 | Stop-Loss: Rs 1,550 | Target: Rs 1,790 | Return: 10 percent
The stock is poised at the brink of an all-time high, demonstrating strength. It trades above both the 20 and 50 exponential moving averages, indicating positive momentum. The RSI remains elevated surpassing an impressive 72 level affirming strong bullish sentiment.
Weekly candle patterns reinforce robust traction, while the accompanying volume supports the upward price movement.
Hence, based on the above technical structure, one can initiate a long position at CMP of Rs 1,630 for a target price of Rs 1,790. The stop-loss can be kept at Rs 1,550.
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.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
