On the monthly charts, Nifty has maintained its Higher Top Higher Bottom formation and it has formed a fresh life time high at 17,947. On the weekly time frame, it has followed the monthly bullish trend and maintained Higher Top Higher Bottom formation since last 9 weeks.
On the shorter time frame like daily charts, Nifty has strongly sustained above its 20-day simple moving average (SMA) (17,531) after making a fresh life-time high at 17,947, which indicates strong positive undertone of the market for the short-to-medium term.
On the indicator front, the Relative Strength Index (RSI) plotted on the daily time frames can be seen sustaining consistently above the 65-mark which shows strong positive momentum for the short-to-medium term.
The key support levels to watch for in the short term are 17,531 (20-Day SMA) and 17,254 (3-Week Low).
On the upside, the key resistance levels are 18,111. If the index sustains above this level, we might see the index head higher towards 19,046.
Based on the above analysis and the technical parameters mentioned, we believe that the long term bullish trend remains intact and the Nifty will move towards 18,111 and 19,046 in the coming days.
Here are three buy calls for next 2-3 weeks:
Sun Pharmaceutical Industries | LTP: Rs 818.25 | Stop Loss: Rs 743 | Target: Rs 966 | Return: 18 percent
On the monthly charts, the Sun Pharma has been maintaining Higher Top Higher Bottom formation since April 2020 and sustaining at 52-week high levels. On the weekly charts, the stock is sustaining firmly above the Horizontal Channel pattern which has been forming since last 8 weeks which shows strong positive sentiments of the stock for the medium to long term.
On the daily charts, the stock has given a breakout of consolidation formation with volume confirmation after taking strong support at 20 Day SMA which indicates the stock is ready for the next Bull run.
On the indicator front the RSI plotted on the medium term charts can be seen moving higher and sustaining above 65 mark, indicating strong positive momentum of the current up move.
Going ahead the immediate resistance is placed at Rs 966 (August 2015 High) followed by Rs 1,200 (Life Time High). The key support levels are Rs 743 (2-month low) and RS 652 (swing low).
One can buy the stock at current levels (Rs 818) for the target of Rs 966 followed by Rs 1,200 with a strict stop loss of Rs 743 on closing basis.
BHEL | LTP: 64.65 | Stop Loss: Rs 50 | Target: Rs 79 | Return: 22 percent
On the monthly charts, Once again the stock has formed Higher Top Higher Bottom formation after a decent correction of 3 months from Rs 79 to Rs 50 mark.
On the weekly charts, the stock has sustained above its 200-week SMA which shows strong positive sentiment of the stock for the medium to long term.
In the shorter time frame like daily charts, the stock has given a breakout of ‘A-B-C pattern’ and started moving upwards which indicates the stock is now ready for the next up move.
The momentum indicator RSI plotted on multiple time frames 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 79 (June 2021 High) followed by Rs 91 (April 2018 High).
The key level to watch for on the down are Rs 50 (Swing Low) followed by RS 43 (Multiple Touch Point Level).
One can buy BHEL at current levels (Rs 64.65) for the target of Rs 79 followed by Rs 91 with a strict stop loss of Rs 50 on closing basis.
Canara Bank | LTP: Rs 173 | Stop Loss: Rs 155 | Target: Rs 200 | Return: 15.6 percent
Canara Bank has sustained above multi-month high which shows strong positive undertone of the stock for medium to long term. On the Weekly time frame, the stock has given a breakout of ‘Ascending Triangle’ pattern which has been forming since April 2021 and moving higher which confirms the strong positive sentiments of the stock for the medium term to long term.
On the daily charts, the stock has formed A-B-C pattern and it has also sustained above 50-day SMA with volume confirmation which indicates the stock is ready for next bull run.
On the indicator front the RSI plotted on multiple time frames can be seen placed above the 60 level and moving higher, indicating that the stock is currently in a strong positive momentum. Going ahead the immediate resistance is placed at RS 200 (200-day SMA) followed by Rs 234 (November 2019 High).
The key support levels are Rs 155 and Rs 124 level. One can buy the stock at current levels (Rs 173) with a target of Rs 200 followed by Rs 234 and a strict stop loss of Rs 155 on closing basis.
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