Nifty has been trapped in a range of 500 points for more than a month now. This is a slender range considering the fact we are trading at much-elevated levels.
After undergoing some price correction, we witnessed a good relief rally to reclaim the level of 15,800 on a weekly closing basis.
This bodes well for the bulls but considering the recent trend, we are still not out of the woods yet. We should wait for Nifty to surpass the sturdy wall of 16,000.
After this, the next immediate levels to watch out for would be 16,200 – 16,400.
If Nifty has to reach and surpass 16,000, the banking sector will play a vital role. The banking index has to surpass 36,000 if we have to see the benchmark Nifty at new highs.
For Nifty Bank, 35,000 – 35,500 are intermediate hurdles. On the lower side, the cluster of supports for Nifty is placed at 15,700 – 15,550 – 15,450 and for Bank Nifty, 34,200–33,900 are the make or break levels.
Here are two buy calls for the next 2-3 weeks:
Mirza International | LTP: Rs 63.75 | Target price: Rs 70 | Stop loss: Rs 59.50 | Upside: 10%
This stock has not done much over the past one and a half years. However, recently, there has been a good base building in this stock tad above the Rs 50 mark.
On July 23, we finally witnessed a decisive breakout from its long consolidation range with some authority.
On the daily chart, we can see a bullish configuration known as ‘cup and handle’ with breakout happening above the resistance of Rs 61.
BPCL | LTP: Rs 460.90 | Target price: Rs 482 | Stop loss: Rs 448 | Upside: 5%
The oil marketing companies (OMCs) have cooled off a bit from their recent highs. In the last few months, the most vibrant counter in this space has been BPCL as it is always surrounded by lots of news flow.
It has corrected more than 10 percent from its June highs and last week managed to find strong support around the 89-day exponential moving average level of Rs 450.
In the week gone by, this stock performed well to form a bullish engulfing pattern on the weekly chart.
In addition, on the lower timeframe chart, we can see prices traversing and sustaining above the important hurdle of the 20-day exponential moving average.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)
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