The Nifty 50 index is shows a robust bullish trend characterised by a consistent pattern of higher tops and higher bottoms on various timeframes, including weekly and monthly charts. The recent attainment of fresh life highs reinforces the optimistic market sentiment for the medium to long term.
Despite a notable instance of profit-booking in the current week following a fresh life high at 21,834 levels on the weekly chart, the Nifty maintains its higher top and higher bottom formation, underscoring a resilient bullish undertone. While there is some structural damage to the bullish trend on the daily chart due to a breach of the five-day low, the index found robust support at its 13-day EMA (exponential moving average), indicating a rebound and confirming the continued control of the bulls.
Critical technical indicators, particularly the relative strength index (RSI), consistently depict positive momentum, maintaining levels above 65 across daily, weekly, and monthly intervals. This sustained strength in RSI instills confidence in the enduring positive momentum in the medium to long term.
Looking ahead, the immediate resistance for the Nifty is identified at the record high level of 21,834, with an additional resistance level at 22,000. On the downside, crucial support levels are seen at 21,330 and 20,975.
Considering the overall chart structure, we maintain a bullish stance with specific targets set at 21,834 and 22,000 for the short to medium term. This analysis suggests a positive trajectory for the index, indicating a likelihood of sustained gains in the near term.
Here are three buy calls for next 2-3 weeks:
KEI Industries: Buy | LTP: Rs 3,345 | Stop-Loss: Rs 3,247 | Target: Rs 3,616 | Return: 8 percent
KEI is currently surging at its all-time high, sustaining a bullish trend that originated from the low in March 2020, showcasing enduring positive momentum. The stock exhibits a remarkable pattern of maintaining higher tops and higher bottoms without significant dips, portraying a robust upward trajectory.
The ADX (average directional index) study this week reveals a strong trend, with the ADX line surpassing the 30 mark. This shows the strength in the ongoing trend, while the +DI (directional indicator) above 30 further emphasizes the stock's robust momentum for a sustained upward trajectory.
Adding to the positive outlook, the concept of mean reversion is evident. Dips towards the short-term 12-week EMA and 26-week EMA consistently act as crucial support levels, contributing to the stock's bullish stance.
Looking forward, there is an anticipation of further price ascent towards Rs 3,616 mark. It is recommended to set a stop-loss at Rs 3,247, strictly based on the closing basis.
ITC: Buy | LTP: Rs 476 | Stop-Loss: Rs 451 | Target: Rs 527 | Return: 11 percent
ITC is currently positioned approximately 4 percent away from reaching its all-time highs, indicating a robust momentum in the stock. Following a significant rally that commenced in March 2022, the stock is currently in the process of forming a healthy base.
During the retracement phase from the peak witnessed in July 2023, ITC found strong support and established a solid base formation around its 12-week and 26-week EMA. This highlights the resilience of the stock's trend. Furthermore, with the stock holding above the 20-week EMA, the bullish momentum remains intact, signaling the potential for further upward movement.
The MACD (moving average convergence divergence) indicator has played a supportive role, registering a positive crossover in the recent week within its positive territory. This affirms the stock's strong momentum and adds to the positive outlook. The ADX study, quoting above the 30-mark, and the +DI reverting upward from the demand zone further indicate the strength of the bullish trend.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 527 levels. It is recommended to set a stop-loss at Rs 451 based on closing values.
Godrej Industries: Buy | LTP: Rs 823 | Stop-Loss:Rs 784 | Target: Rs 903 | Return: 10 percent
Godrej Industries is currently positioned at its all-time highs, reflecting a robust and sustained positive trend characterized by a rising price structure and strong underlying momentum.
The stock is securely maintaining levels above its multi-year high, specifically from 2017. In the recent week, there has been a breakout from this zone, and the confirmation of the trend is evident through consistent trading with a significant surge in volumes, surpassing the 21-week average period. This surge in volume suggests anticipation and participation from larger investors.
Furthermore, the ADX study, currently quoting at 52, highlights the establishment of a strong trend in the stock. The accompanying +DI (positive directional indicator) above 30 reinforces the confirmation of a new uptrend, showcasing the strength of the positive momentum.
Godrej Industries is trading comfortably above key moving averages, including the 12-week and 26-week EMA. This alignment with the moving averages not only supports the positive momentum but also enhances confidence in the stock's upward trajectory.
Looking ahead, we anticipate further upward movement in prices, targeting Rs 903 level. It is recommended to set a stop-loss at Rs 784 based on closing values.
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.
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!
