On the weekly chart, prices are maintaining its higher high, higher low formation since the past seven weeks, illustrating bullish undertone of the Nifty50.
On the daily timeframe, the index is sustaining above its important level of 18,000 since last 2 weeks.
RSI (relative strength index) on the daily timeframe is sustaining above 60 mark, reflecting presence of strong momentum for an up move.
The Nifty has an immediate resistance levels placed at 18,350 (January 2022 high) followed by 18,604 (lifetime high) and on the other side, it has strong support level placed at 17,838 (Gap support) followed by 17,630 (Gap support).
As per the overall the price structure and evidence supported by indicators, we feel that if Nifty sustains above 18,350, the index can move higher till 18,604 levels.
Here are three buy calls for next 2-3 weeks:
Bharti Airtel: Buy | LTP: Rs 825.75 | Stop-Loss: Rs 760 | Target: Rs 930 | Return: 12 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 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.
Bollinger band in the daily timeframe have started to expand, indicating rising volatility in the stock.
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 930 where the stop-loss must be Rs 760 on the closing basis.
Britannia Industries: Buy | LTP: Rs 4,134.65 | Stop-Loss: Rs 3,930 | Target: Rs 4,800 | Return: 16 percent
Britannia has surpassed the prior swing high of Rs 3,949 (July 2022), which negates the lower low, lower high formation.
The stock in the latest week has given a breakout of Inverse Head and Shoulder pattern, indicating beginning of the uptrend.
The breakout is confirmed by the Higher volumes and a gap.
The prices are hovering around the upper Bollinger band indicates, the rising volatility of the underlying.
RSI on the weekly timeframe have shown a breakout as well reflecting the rising momentum of the stock.
Going ahead we expect the prices to go higher till the level of Rs 4,800 where the stop-loss must be Rs 3,930 on the closing basis.
Elecon Engineering Company: Buy | LTP: Rs 445.10 | Stop-Loss: Rs 370 | Target: Rs 570 | Return: 28 percent
Elecon is currently trading near its record high level which tells that the stock already is in good momentum.
The stock gave breakout from the Rectangle pattern in this week, which indicated continuation of the prior uptrend.
On the daily timeframe Bollinger band have started to expand, indicating increasing volatility of the stock.
Ratio charts versus benchmark index Nifty50 have shown a breakout as well, which illustrates that the stock still can outperform from the current levels.
Going ahead we expect the prices to move higher till the level of Rs 570 where the stop-loss must be Rs 370 on the weekly Closing basis.
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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