Shitij Gandhi
Bullish momentum remained intact in the Indian market as Nifty surpassed 11,300 levels while Bank Nifty also managed to close above 22,200, supported by a sharp surge in HDFC twins, along with gains in Axis Bank.
The rally was also supported by metal counters, with Tata Steel, JSW Steel and Hindalco as top performers.
On the derivative front, call writers were observed covering their position at 11,200 strikes while put writers were seen shifting to higher bands which indicates that bias is likely to remain in favour of bulls in the upcoming sessions as well.
On the technical front, Bank Nifty is looking much more positive on charts.
The immediate hurdle for Bank Nifty is placed at 22,350, above which, a follow-up buying can be seen till 22,700 in the coming sessions.
Here are three buy calls for the next 2-3 weeks:
Bhageria Industries | Buy | LTP: Rs 135.55 | Target price: Rs 149 | Stop loss: Rs 120 | Upside: 10%
For the last two months, the stock has been consolidating in a range of Rs 110 to Rs 125 with prices holding well above its short and long term moving averages on daily and weekly intervals.
At the current juncture, the stock has given a consolidation breakout with positive divergences on the secondary oscillators along with a rise in price and volume.
On weekly charts as well, the stock has been holding well above its 200 days exponential moving average which suggests a limited downside in prices.
Traders can accumulate the stock in the range of Rs 130-135 for the upside target of Rs 149 with a stop loss below Rs 120.
The stock has been trading well above its 200 days exponential moving average on daily charts and can be seen trading in a rising channel on the weekly intervals as well with the formation of a higher bottom pattern.
This week, the stock has given a breakout above Rs 225 after forming a rounding bottom pattern on daily charts.
The rising volumes along with fresh breakout suggest the next upside in the prices, going forward.
Traders can accumulate the stock in the range of Rs 225-231 for the upside target of Rs 261 with a stop loss below Rs 205.
The stock has been consolidating in a range of Rs 235-275 for the last two months with consistent buying at support levels.
The consolidation has formed an inverted head and shoulder pattern on daily charts.
This week, we have observed a fresh breakout above the neckline of the pattern formation.
The price-volume action on charts suggests next upswing and the stock is consistently holding above is 100 days exponential moving average as well.
Traders can accumulate the stock in the range of Rs 295-302 for the upside target of Rs 340 with a stop loss below Rs 270.
(The author is Senior Technical Analyst at SMC Global Securities)
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