We have seen around 2,400 points rally in the Nifty from the low of 15,671 in the last five weeks but it closed below 17,700 on April 7 and filled a rising gap, created three days back, indicating the trend will remain neutral with a positive biased for the short to medium term.
The Nifty has sustained above 20-week simple moving average (SMA) at 17,271 for the last couple of weeks, pointing to positive strength in the index.
On the daily charts, the index has given a Cup & Handle pattern breakout at 17,450 a few days back and has formed Lower Top Lower Bottom pattern, indicating it may touch the breakout level once again in the coming days.
On the indicator front, the relative strength index (RSI) plotted on the daily chart is sustaining above the 55- mark, which shows positive momentum.
Immediate resistance is at 18,000 and 18,350 followed by 18,604 and 19,100 levels. The downside support for the index is placed at 17,450 (breakout level) followed by 17,000 levels (cluster of support that is multiple touch point, gap support).
The index is in a sideways mode. The Nifty will move in the range of 17,450–18,000 in the coming days. It has support at 17,450 and if it is breached, the index will slip to 17,000.
Here are three buy calls for the next two-three weeks:
Bharat Electronics: Buy | LTP: Rs 234.35 | Stop-Loss: Rs 215 | Target: Rs 293 | Return: 25 percent
Bharat Electronics (BEL) is trading at a lifetime high and has given five-month consolidation breakout on the weekly charts that it had been forming since November 2021.
We witnessed a volume pick up at every rise in the price, which shows a strong bullish undertone.
On the daily chart, every time the stock has taken strong support at 200-day SMA, it bounced back, indicating long-term positive strength in the stock.
On the indicator front, RSI plotted on the weekly time frame sustained above the 60-mark, with a higher top higher bottom pattern, indicating increasing bullish momentum in the prices.
We expect the price to move at higher levels towards Rs 273 after which it may move towards Rs 293. We recommend a stop-loss of Rs 215 on daily closing basis.
Tata Consumer Products: Buy | LTP: Rs 805 | Stop-Loss: Rs 740 | Target: Rs 987 | Return: 23 percent
Tata Consumer Products is maintaining higher top, higher bottom formation on all the time frames—daily, weekly and monthly charts—after a recent correction from Rs 889–650 levels (which is approximately 27 percent).
On the daily chart, the stock has sustained above its 200-day SMA since the last few days with volume confirmation, which shows a positive undertone of the stock.
On the indicator front, the RSI plotted on the weekly chart is placed above the 55-mark and moving higher, indicating increasing bullish momentum.
We may see prices move higher towards the Rs 889-mark (lifetime high). If the prices sustain above Rs 889, we may see a further up move towards Rs 987. We recommend a strict stop-loss of Rs 740 on daily closing basis.
Tata Power: Buy | LTP: Rs 277.80 | Stop-Loss: Rs 250 | Target: Rs 351 | Return: 26 percent
Tata Power Company has given a strong breakout at all-time high level with volume confirmation after making a triple bottom price pattern at Rs 200 since October 2021.
The stock has been sustaining above 20-week SMA with minor whipsaws since June 2020, which indicates strong positive sentiments of the stock for the medium to long term.
The RSI indicator plotted on the weekly charts is sustaining above the 65-mark, indicating positive momentum.
We expect the stock to move higher towards Rs 323 and if it manages to cross the level, it will move towards Rs 351.
One should maintain a strict stop-loss of Rs 250 on daily closing basis for this trade.
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