Rupak De, senior technical analyst at LKP Securities
The Nifty remained in sideways movement over the past two days, suggesting a lack of demand at higher levels. However, the overall trend remains strong, as the index continues to sit comfortably above critical moving averages, indicating absence of aggressive short positions at this time.
On the higher end, the resistance is placed between 19,450 and 19,500 which the Nifty might face some difficulty in surpassing. Looking ahead, it is expected that the Nifty will likely continue to trade sideways, as long as it sustains within the range of 19,200 to 19,500, implying a range bound trades unless there is a directional breakout.
The Bank Nifty recently experienced selling pressure from higher levels, but the bears were unable to break the support at 45,000. As a result, the index has been trading within a range of 45,000-45,500. A break on either side of this range will determine the next directional move for the index.
If the index breaks below the support level of 45,000, it is likely to witness further downside towards 44,500 and potentially lower. On the other hand, if the index manages to surpass the level of 45,500 on a closing basis, it will indicate strength and may lead to further upside towards the 46,000 level.
Here are three buy calls for next 2-3 weeks:
Indiabulls Housing Finance: Buy | LTP: Rs 130.5 | Stop-Loss: Rs 124 | Target: Rs 145 | Return: 11 percent
Indiabulls Housing Finance has experienced a Head and Shoulder breakout, indicating a potential upward trend. Additionally, the relative strength index (RSI) is showing a bullish crossover and rising, suggesting increasing buying momentum in the stock.
Furthermore, the stock is sustaining above a critical moving average, which further supports the notion of a bullish outlook. These factors combined indicate positive market sentiment and the potential for further price appreciation in the stock.
BHEL: Buy | LTP: Rs 93 | Stop-Loss: Rs 85 | Target: Rs 110 | Return: 18 percent
BHEL has experienced swing high breakout on the daily chart accompanied by a sharp surge in volumes. This breakout is considered a bullish signal for the stock. The overall undertone for BHEL is extremely bullish, with the stock forming higher highs and higher lows, indicating a positive trend.
The momentum indicator RSI has shown a positive crossover, further confirming the buy signal for BHEL. There is a strong support level at Rs 85, which coincides with the stock's 20-day moving average (20DMA).
This support level is expected to act as a cushion for the bulls. In terms of potential upside, BHEL has a target range of Rs 110.
Divis Laboratories: Buy | LTP: Rs 3,748 | Stop-Loss: Rs 3,620 | Target: Rs 4,100 | Return: 9.4 percent
The stock has recently experienced a consolidation breakout, indicating a potential shift in the price trend. This breakout suggests that the stock has broken out of a period of range-bound trading and may now be poised for an upward movement.
Additionally, the RSI is displaying a bullish crossover and rising, indicating increased buying momentum and positive market sentiment. Furthermore, the stock is sustaining above a critical moving average, which further supports the notion of a bullish outlook.
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.
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