On the weekly chart, prices are maintaining its higher high, higher low formation since the past five weeks, reflecting a bullish undertone in the index.
On the daily timeframe, the index is stuck in the narrow range of 18,260-18,442 since the last few days, indicating indecisiveness for the short term.
The RSI (relative strength index) on the daily timeframe is sustaining above 60, indicating presence of a strong momentum for an up-move.
The Nifty has an immediate resistance at 18,500 (key resistance) followed by 18,604 (lifetime high) and, on the other side, it has a strong support at 18,103 (gap support), followed by 17,838 (gap support).
As per the overall price structure and evidence supported by indicators, we feel that if the Nifty sustains above 18,500, the index can move higher till 18,604, followed by 18,750 levels.
Here are three buy calls for next 2-3 weeks:
Bharti Airtel: Buy | LTP: Rs 846 | Stop-Loss: Rs 800 | Target: Rs 990 | Return: 17 percent
Looking at the broader picture of Bharti Airtel, we can observe that the prices have maintained positive structure without getting into lower low, lower high formation against what the benchmark index Nifty50 did post October 2021. This shows strong relative strength of the stock.
Prices have shown a bounce on the upside while closing at 3 weeks high after retesting the rectangle pattern which the prices had given a breakout in last week of September 2022. This indicated beginning of the trend on the upside.
Prices are currently hovering around upper Bollinger band indicating rising volatility of the stock for up move.
RSI on the weekly timeframe have sustained well above 60 mark indicates bullish momentum in stock.
Going ahead we expect the prices to go higher till the level of Rs 990 where the stop-loss must be Rs 800 on the closing basis.
Cummins India: Buy | LTP: Rs 1,381 | Stop-Loss: Rs 1,270 | Target: Rs 1,600 | Return: 16 percent
The correction in Cummins India post MARCH 2021 was orderly, as the stock maintained its uptrend and did not get into lower top, lower bottom formation to what the benchmark index Nifty50 has done.
The stock in the last week of September 2022 gave breakout from the Bullish Flag pattern while taking support from the Bullish trend line indicated continuation of prior uptrend.
The breakout is confirmed by the higher volumes.
The Bollinger band have started to expand on daily timeframe indicating rising volatility for uptrend.
RSI on the weekly as well as on daily timeframe has sustained well above 60 mark indicating rising momentum.
Going ahead we expect the prices to go higher till the level of Rs 1,600 where the stop-loss must be Rs 1,270 on the closing basis.
Krishna Institute of Medical Sciences: Buy | LTP: Rs 1,591 | Stop-Loss: Rs 1,440 | Target: Rs 1,850 | Return: 16 percent
KIMS Hospitals is in a clear higher high, higher low formation indicating bullish undertone of the prices.
In the latest week, the stock has given a breakout from the Cup & Handle pattern, indicating beginning of the trend on the upside.
The breakout is confirmed as it is accompanied by higher Volumes.
On the daily timeframe prices have sustained well above Upper Bollinger band indicating rising volatility.
RSI plotted on the Weekly time frame have shown Range shift reflecting the rising momentum in the stock.
Going ahead we expect the prices to go higher till Rs 1,850 where the stop-loss must be Rs 1,440 on the closing basis.
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