Last week, despite being a truncated one, was not at all short of action as we saw good traction in some of the individual pockets, especially on the last session.
The index is currently undergoing a time-wise correction and hence, it remained in a small trading band throughout last week.
As far as levels are concerned, 14,900, followed by 15,050 remain to be a sturdy wall, but the way charts are placed now, due to last Thursday’s late surge, the possibility of testing and even going beyond this cannot be ruled out.
The hourly chart exhibits the configuration of a bullish cup and handles pattern and any sustainable move beyond 14,900 would strengthen this structure to attract some buying interest in the heavyweight constituents as well.
This bullish structure will get negated if Nifty slides below 14,600 and hence, one should keep a close tab on how the market moves in the first half of this week. The levels of 14,800 and 14,670 are immediate supports.
In the week gone by, the financial stocks did not participate much in Tuesday’s up move but they proved their significance on the last day as it single-handedly propelled Nifty beyond 14,800 towards the fag end on the weekly expiry session.
This space plays a vital role if our benchmark has to move beyond the 15,000 mark.
Apart from this, metal stocks had a mesmerizing rally throughout the week as some of the steel counters soared as if there is no tomorrow.
The stocks from the cash segment did exceedingly well after a lull of nearly four weeks. It’s advisable to focus on such potential movers.
Here are three buy calls for the next 2-3 weeks:
Prakash Industries | LTP: Rs 81.05 | Target price: Rs 94 | Stop loss: Rs 72.20 | Upside: 16%
This stock has been steadily moving higher since March 2020 fiasco. However, it was unable to gain real momentum despite the broader market having a spectacular run all this while.
In the last couple of sessions, all of a sudden the stock prices started zooming up along with towering volumes, indicating tremendous buying interest in the stock.
In this course of action, it has managed to surpass the Rs 75-mark, convincingly after nearly two years.
Considering the broader degree of price action, this probably is the beginning of the multi-month rally in this counter.
We recommend going long on a small dip towards Rs 78 for a couple of short-term targets of Rs 88 and Rs 94.
Happiest Minds Technologies | LTP: Rs 612 | Target price: Rs 655 | Stop loss: Rs 542 | Upside: 7%
This relatively newer stock has not been doing anything for nearly five months after its listing on the bourses.
During the first half of February, the volumes started picking up rapidly and this was clearly getting reflected in the price movement as well.
Thereafter, in merely eight sessions, the stock had a sharp rise of more than 70 percent to grab the eyeballs of so many traders/investors.
This was followed by a brief phase of consolidation which seems to be over now.
Last Thursday, the stock price finally managed to blow out as we witnessed a colossal rally of more than 10 percent along with sizable volumes.
Although the historical price data is not much, the recent price chart displays a bullish flag breakout in this stock.
Sun Pharmaceutical Industries | LTP: Rs 610 | Target price: Rs 632 | Stop loss: Rs 596.50 | Upside: 4%
The entire pharma space has been quiet for nearly a couple of months now after seeing a phenomenal run in the pandemic time.
The stock has been consolidating in a downward sloping channel with no major destruction in prices.
Now, after finding some support around the 89-EMA, the stock prices are about to move higher.
Due to Thursday’s price up move, it is at the threshold of the higher trendline of the channel.
Looking at the positive placement of the momentum oscillators as well as few key moving averages, the possibility of it confirming the breakout is quite high.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)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.