The Indian market made a smart recovery on April 13 after the steep fall of the previous day. Some lower-level buying emerged in banking, auto and metal counters that supported the up move in the market.
On the derivatives front, Put writers were seen adding hefty open interest at 14,300 strike, which should act as major support for the Nifty.
On the technical front, the Bank Nifty has a major hurdle in the range of 32,150-32,200, as the 100-day exponential moving average is placed there.
For the Nifty, the range of 14,350-14,250 will be the make or break level and on the higher side, 14,700 will be an immediate hurdle.
We expect volatility to grip the market in the upcoming sessions as well. However, any decisive move beyond the 14,200 and 14,700 range will indicate the further direction for the market.
Here are three buy calls for the next two-three weeks:
Britannia Industries | LTP: Rs 3,748 | Target price: Rs 4,210 | Stop loss: Rs 3,450 | Upside: 12%
At the beginning of April, this stock gave a fresh breakout above its 200-day exponential moving average, which was placed at around Rs 3,520 on the daily timeframe.
After that, it rallied sharply and tested Rs 3,850 in a short span of time. The stock has been consolidating in the range of Rs 3,700-3,850 for the last few days along with buying on every dip.
Secondary oscillators are suggesting a next up move in the prices after a pause as the stock has given a breakout above the inverted head and shoulder pattern on broader charts.
Traders can accumulate the stock in the range of Rs 3,720-3,750 for an upside target of Rs 4,210 with a stop loss below Rs 3,450.
FDC | LTP: Rs 312.50 | Target price: Rs 345 | Stop loss: Rs 283 | Upside: 10%
This stock has been consistently moving in a broader range of Rs 310-275 for the last three months.
It has formed a rounding bottom pattern on the charts and is all set for a fresh breakout above its recent high of Rs 315.
A breakout above the 200-day exponential moving average has also been witnessed on the daily charts with additionally higher volumes, which suggests the next upswing in the price after a prolonged consolidation.
Traders can accumulate the stock in the Rs 305-310 range for an upside target of Rs 345 with a stop loss below Rs 283.
Jindal Stainless (Hisar) | LTP: Rs 137.45 | Target price: Rs 150 | Stop loss: Rs 119 | Upside: 9%
After testing a 52-week high of Rs 164.85 in January 2021, this stock slipped sharply to Rs 110 due to profit-booking at higher levels.
However, it took support at its 200-day exponential moving average on the daily interval and made a V-shape recovery to once again reclaim the Rs 135 level.
At the current juncture, the stock can be seen trading well above its short and long-term moving averages with the formation of higher highs.
The positive divergences on secondary oscillators along with price action above ascending triangle breakout suggest the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 130-135 for the upside target of Rs 150 with a stop loss below Rs 119.
(The author is Senior Technical Analyst at SMC Global Securities)Disclaimer: The views and investment tips expressed by 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.