The Nifty has returned to a phase of rising pressure from selloffs in the 18,100–18,200 supply zone, but 17,770 seems to be an important critical support level. If it slips below 17,770, then it is likely to test its 200-DMA (day moving average), which is placed around 17,350, where 17,650 will be an intermediate support level. On the upside, 18,000 will be an immediate and critical hurdle.
Bank Nifty has failed to break through the 42,000 level and has fallen below the 40,800 support level. There is risk that it may revisit the low of 39,400, which may coincide with its 200-DMA. On the upside, 41,100 will act as a strong hurdle.
The Put/Call ratio below 0.75 and FIIs' short exposure in index futures at 78 percent indicate an oversold market, but the market ignores overbought and oversold zones in expiry week.
The market is watching the geopolitical situation, the movement of the dollar index, and US bond yields, while the flow of FIIs will be another important factor in market direction.
Here are three buy calls for next 2-3 weeks:
Zensar Technologies: Buy | LTP: Rs 293 | Stop-Loss: Rs 260 | Target: Rs 340 | Return: 16 percent
The counter is bottoming out after a meaningful correction, and there is a breakout of an Inverse Head & Shoulder formation, which is a sign of a bullish reversal.
It was able to close above its key moving averages while displaying positive divergence in the RSI (relative strength index). On the upside, Rs 320+ is an immediate hurdle, then Rs 340 is the next target level, while on the downside, Rs 260 is the major support during any correction.
Siemens: Buy | LTP: Rs 3,294 | Stop-Loss: Rs 3,070 | Target: Rs 3,624 | Return: 10 percent
The counter is in a classical uptrend, and it has witnessed a breakout of an ascending triangle formation to resume its uptrend. The breakout coincides with rising volume, and it manages to sustain above the breakout level despite weakness in the broader market.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, a cluster of moving averages around Rs 3,070 level will act as a strong support level.
NTPC: Buy | LTP: Rs 173.25 | Stop-Loss: Rs 160 | Target: Rs 194 | Return: 12 percent
The counter has witnessed a breakout of triangle pattern formation to resume its classical uptrend after a long consolidation phase. It is respecting its 200-DMA, which is currently placed at Rs 160 level.
Most of the momentum indicators are positively poised and indicate further rallying in this counter.
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