The Nifty index is in a consolidation phase, with 19,800-19,850 acting as a strong immediate supply zone and 19,700-19,600 serving as a notable demand zone.
If Nifty successfully surpassed the 19,850 levels, we anticipate a potential upward movement towards 19,990 and 20,100. Conversely, on the downside, the 19,500 and 19,400 levels are crucial support zone.
In case of Bank Nifty, a consolidation pattern is also observed. The 44,600 levels represent a significant immediate hurdle, coinciding with a cluster of multiple moving averages.
Further up, the critical resistance stands at 45,000. Breaching this level may trigger a substantial short-covering rally. Conversely, in terms of support, the 44,000-43,700 zone is vital for maintaining stability.
Here are three buy calls for next 2-3 weeks:
Newgen Software Technologies: Buy | LTP: Rs 1,041 | Stop-Loss: Rs 950 | Target: Rs 1,194 | Return: 14 percent
The counter is in classical bullish momentum and is forming higher highs and higher lows over a longer timeframe. It has witnessed the breakout of a Triangle formation. The previous swing high around Rs 960 was an immediate level of resistance, but in the last trading session, it broke that level with strong volume and started a new leg of rally towards Rs 1,100.
Based on this, we can expect Rs 1,180+ levels in the short to long term.
On the downside, the previous breakout level of Rs 960 is a critical support level, while Rs 950 is a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
Ion Exchange (India): Buy | LTP: Rs 606 | Stop-Loss: Rs 535 | Target: Rs 714 | Return: 18 percent
The counter is witnessing a breakout of the Classical Symmetrical triangle formation with strong volumes on the daily chart. The overall structure is very bullish as it trades above its all-important moving averages. And most of the momentum indicators are also positively poised and are indicating a further rally in this counter.
On the downside, a cluster of moving averages is placed at the Rs 535 levels, which will act as a strong support level.
Talbros Automotive Components: Buy | LTP: Rs 1,125 | Stop-Loss: Rs 1,020 | Target: Rs 1,304 | Return: 16 percent
The stock is currently experiencing an upward trend, with a recent breakout from a Triangular pattern confirming its continuation. This breakout aligns with an increase in trading volume and the stock's ability to maintain levels above the breakout point.
Furthermore, the stock is trading above its crucial moving averages and showing positive momentum according to various indicators. In the event of a decline, the support level at Rs 1,050 is expected to offer significant reinforcement, followed by Rs 1,020 as the subsequent support level.
Additionally, the stock is demonstrating a strong adherence to its 20-day moving average, indicating robust trend strength.
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