Nifty slipped back below 15,750 level, tracking weak global cues, on July 27. Except for metal and PSU bank indices, all sectors followed the footsteps of the benchmark and ended the day in the red.
Nifty Pharma index was the worst hit with a loss of over 4 percent.
On the derivatives front, Call writers once again added hefty open interest at 15,800, 15,900 and 16,000 strikes which points towards limited upside in the Nifty.
Put writers were seen unwinding their position from 15,700 strike which hints that bulls are on the back foot as of now.
Secondary oscillators suggest that the market is likely to trade with a negative bias in the coming sessions as long as Nifty is trading below 15,850-15,900 levels.
Volatility may be high as we are near the expiry of the July futures and options series.
Here are three buy calls for the next 2-3 weeks:
Bharti Airtel | LTP: Rs 540.15 | Target price: Rs 578 | Stop loss: Rs 510 | Upside: 7%
This stock has been consolidating in the range of Rs 550-515 for the last two months. At the current juncture, this stock has managed to take support at its 200-day exponential moving average on the daily interval and formed a rounding bottom pattern.
Secondary oscillators are forming positive divergences which point towards the next upside in the stock from the current levels.
Gabriel India | LTP: Rs 139.30 | Target price: Rs 154 | Stop loss: Rs 123 | Upside: 11%
This stock has been maintaining its uptrend and seen trading in a rising channel on the broader charts with the formation of the higher high and higher bottom.
However, for the last more than a month, this stock has been fluctuating in a broader range of Rs 135-120 along with multiple supports on the short-term intervals at its key moving averages.
At the current juncture, this stock has given a fresh breakout above the consolidation zone with larger volumes.
The price-volume action with breakout suggests a long build-up in the stock.
Hindalco Industries | LTP: Rs 417.35 | Target price: Rs 464 | Stop loss: Rs 380 | Upside: 11%
After testing the level of Rs 427 in May, this stock took a breather and retraced towards Rs 360.
At the current juncture, this stock has given a breakout above the ascending triangle pattern and once again got momentum above its important hurdle of Rs 405.
Rising volumes along with positive divergences on secondary oscillators suggest the next upswing in the prices.
(The author is Senior Technical Analyst at SMC Global Securities)
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