For the last few sessions, we have been witnessing a tug of war between bulls and bears which is keeping Nifty in the range of 14,850-15,200.
However, Nifty once again managed to reclaim a decisive move above 15,000 as IT counters witnessed smart up move in the late hour of trade along with some leading financial names.
On the derivatives front, Call writers at 15,000 and 15,100 strikes were seen unwinding their short positions while Put writers added hefty open interest at 15,000.
The technical setup suggests that the market may consolidate in the coming sessions with Nifty likely hovering within the broader range of 15,300-14,800.
Traders should keep stock-specific approach. On the index front, bias is likely to remain in favour of bulls as long as Nifty is holding above 14,700 level.
Here are three buy calls for the next 3-4 weeks:
Infosys | LTP: Rs 1,345.55 | Target price: Rs 1,488 | Stop loss: Rs 1,250 | Upside: 11%
After testing 52-week high of Rs 1,392.80 in January 2021, the stock slipped sharply towards Rs 1,230 due to profit booking at higher levels.
However, it took support at its 50-day exponential moving average on the daily interval and bounced back sharply above its short-term moving averages.
At the current juncture, the stock has made a double bottom pattern around Rs 1,235 and once again managed to give a fresh breakout above the key resistance level of Rs 1,345 after consolidating in the range of Rs 1,300-1,345.
The positive divergences on secondary oscillators suggest the next up move in the prices. Traders can accumulate the stock in the range of Rs 1,340-1,345 for an upside target of Rs 1,488.
HDFC Life Insurance Company | LTP: Rs 740.20 | Target price: Rs 824 | Stop loss: Rs 680 | Upside: 11%
This stock has been consistently moving higher on charts with the formation of higher highs and bottoms. Besides, it is holding well above its short and long-term moving averages on daily and weekly charts as well.
At the current juncture, the stock has once again given a fresh breakout above its recent high of Rs 740 with a breakout above the ascending triangle pattern visible on daily charts.
Traders can accumulate the stock in the range of Rs 735-740 for an upside target of Rs 824.
Mindtree | LTP: Rs 1,824 | Target price: Rs 2,045 | Stop loss: Rs 1,640 | Upside: 12%
This stock has been consolidating in a broader range of Rs 1,550-1,820 for the last two months. Besides, it is holding well above its short and long-term moving averages on the daily and weekly intervals.
On March 9, the stock made a fresh 52-week high of Rs 1,828 after giving a breakout to a prolonged consolidation phase.
On the technical front, the stock has made an inverted head and shoulder pattern on the short-term charts and given a breakout above the neckline of the pattern formation.
Traders can accumulate the stock in the range of Rs 1,790-1,797 for the upside target of Rs 2,045.
(The author is 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.