Indian market witnessed hefty profit-booking at higher levels and slid sharply from its record highs. Nifty slipped back below 17,800, while Bank Nifty closed below 38,000 on September 28.
IT, realty and banking counters remained under pressure while oil and gas provided some support to the market.
Traders were seen shifting their positions to the October series contracts as we have the expiry of the September series futures and options contract this week.
We expect the market to remain volatile this week. For Nifty, 17,500-17,450 zone would act as strong support while on the higher side, now 17,850-17,950 zone will be strong resistance.
We expect Nifty to consolidate at higher levels for few sessions before surpassing the key psychological level of 18,000.
Here are three buy calls for the next 2-3 weeks:
Jay Bharat Maruti | LTP: Rs 210.10 | Target price: Rs 240 | Stop loss: Rs 185 | Upside: 14%
This stock made its 52-week high of Rs 268.95 in June and since then it has been trading under pressure.
At the current juncture, however, once again this stock has managed to surpass its 100-day exponential moving average on the daily timeframe and given a breakout above its multi-week high.
Rising volumes along with ascending triangle breakout pattern suggest an up move in the prices going ahead. Traders can accumulate the stock in the range of Rs 205-210 for the upside target of Rs 240 with a stop loss below Rs 185.
LIC Housing Finance | LTP: Rs 438.25 | Target price: Rs 474 | Stop loss: Rs 405 | Upside: 8%
This stock has been maintaining its uptrend and can be seen trading in a rising channel with the formation of higher high and higher bottom patterns on daily and weekly charts.
At the current juncture, this stock has given a breakout above the inverted head and shoulder pattern after taking support at its 200-day exponential moving average on weekly intervals.
The breakout is observed with marginally higher volumes which suggest a long build-up in the prices.
Traders can accumulate the stock in the range of 430-440 levels for the upside target of 474 levels with stop loss below 405.
Bajaj Auto | LTP: Rs 3,908.70 | Target price: Rs 4,186 | Stop loss: Rs 3,700 | Upside: 7%
For the last two months, this stock has been consolidating in a broader range of Rs 3,650-3,850 while holding above its 200-day exponential moving average on the daily interval.
This week, this stock has managed to give a breakout above its key resistance level of Rs 3,850 after a prolonged consolidation phase.
The positive divergences on secondary oscillators suggest momentum is likely to continue in the coming sessions as well.
Traders can accumulate the stock in the range of Rs 3,875-3,910 for the upside target of Rs 4,186 with a stop loss below Rs 3,700.
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