Nifty has maintained its higher top higher bottom formation on the monthly chart.
On the weekly timeframe, we witnessed the index form a CIP formation (change in polarity) near 15,430.
On the daily charts, the index has been making fresh lifetime highs for the last three days which indicates a strong positive undertone in the market for the short to medium term.
However, daily RSI can be seen sustaining below 60 mark which shows a lack of positive momentum for the short to medium term.
The key support levels for the short term are 16,722 (gap support) and 16,376 (three-week low).
On the upside, a key resistance level is 17,324 (100 percent extension level of the rise from 14,151-15,962, projected from 15,513).
If the index sustains above this level, we might see it head higher towards 18,016 (138.2 percent extension level of the rise from 14,151-15,962, projected from 15,513).
Here are three buy calls for the next 3-4 weeks:
HDFC Bank | LTP: Rs 1,589.70 | Target price: Rs 1,734 | Stop loss: Rs 1,508 | Upside: 9%
This stock has been sustaining its 5-month high level on the monthly charts which shows a strong positive undertone in the stock for the longer term.
On the weekly charts, it has been sustaining firmly above the consolidation phase for the last three months.
On the daily charts, it has formed higher top higher bottom formation after taking strong support at its 20-day simple moving average which indicates the stock is ready for the next bull run.
RSI plotted on the medium-term charts can be seen moving higher and sustaining above 60 mark, indicating strong positive momentum.
Immediate resistance for the stock is placed at Rs 1,641 (lifetime high), followed by Rs 1,734 (61.8 percent extension level of the rise from Rs 1,025-Rs 1,641, projected from Rs 1,353).
Key support levels are Rs 1,508 (two-week low) and Rs 1,404 (swing low).
This stock has been forming a higher top higher bottom pattern since April 2021 which shows a strong positive undertone in the stock for the medium to long term.
On the weekly timeframe, it has been forming ascending channel pattern since March 2021 while moving higher.
It has sustained near its lifetime high which confirms the strong positive sentiment for the medium to long term.
On the daily charts, the stock took support near its 20-day simple moving average and bounced back with volume confirmation which indicates the stock is ready for the next bull run.
RSI plotted on multiple timeframes can be seen placed above the 60 mark and moving higher, indicating the stock is currently in a strong positive momentum.
The immediate resistance is placed at Rs 1,311 (138.2 percent extension level of the rise from Rs 519-Rs 921, projected from Rs 755), followed by Rs 1,358 (150 percent extension level of the rise from Rs 519-Rs 921, projected from Rs 755).
Key support levels are Rs 1,100 and Rs 1,040.
Reliance Industries | LTP: Rs 2,293 | Target price: Rs 2,582 | Stop loss: Rs 2,128 | Upside: 13%
On the monthly charts, this stock has formed a bullish pattern of the higher top higher bottom.
On the weekly charts, it has given a horizontal channel pattern breakout with volume confirmation which shows the strong positive sentiment of the stock.
In the daily charts, it has formed a change in polarity formation near Rs 2,150 level and is moving upwards which indicates it is now ready for the next up move.
RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher, indicating that the stock is currently in a strong bullish momentum.
The resistance is placed at Rs 2,369 (lifetime high), followed by Rs 2,582 (50 percent extension level of the rise from Rs 864-Rs 2,369, projected from Rs 1,830).
Key levels on the downside are Rs 2,128 (three-week low), followed by Rs 2,016 (swing low).
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