Shitij Gandhi
After gaining for four consecutive weeks, Indian markets took a breather and fell sharply on Tuesday due to profit-booking.
Nifty slipped below 10,700, tracking weakness in Asian peers. The market witnessed a sustained selling among large-cap financial names.
On the technical front, however, Nifty managed to hold above its 200-days exponential moving average which is placed at 10,540 on the daily interval. It should act as a major support for the upcoming sessions.
In the coming sessions, the selling pressure may persist if Nifty slips below 10,500 levels.
On the derivative front, call writers were seen adding hefty open interest at 10,700 and 10,800 call strikes which should limit any sharp upside in the market.
Here are three buy calls for the next 3-4 weeks:
The stock has been consolidating in the broader range of Rs 1,300-1,420 for the last more than two months with prices holding well above their short and long-term moving averages on the daily interval.
At the current juncture, the stock has given a fresh breakout above the consolidation range along with marginally higher volumes which suggest the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 1,410-1,430.
Dabur India | Buy | LTP: Rs 480 | Target price: Rs 519 | Stop loss: Rs 450 | Upside: 8%
On the daily chart, the stock has been maintaining its uptrend, trading in a rising channel with the formation of higher high and higher bottom pattern.
At the current juncture, after forming a 'W' pattern on the daily interval, the stock has given a fresh breakout above the key resistance levels of Rs 475.
The rising volumes with a rise in prices from the last few sessions suggest a long build-up in the prices and points towards the next upswing in the coming sessions.
Traders can accumulate the stock in the range of Rs 476-480.
The stock has been trading in a downward sloping channel for the last few months with the formation of a lower high and lower low pattern on the daily charts.
However, after taking support at its 200-days exponential moving average on the daily charts, a sharp bounce has been witnessed in the stock this week, with a breakout above the falling trendline of the sloping channel.
The surge in volumes along with this breakout suggests the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 2,100-2,130.
(Senior Technical Analyst at SMC Global Securities)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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