The Indian market took a pause on May 25 after witnessing a stunner rally in the week gone by.
Nifty managed to close above 15,200 while Bank Nifty retained 34,600.
On the derivatives front, a tug of war was seen among bulls and bears at 15,200 strike as both call and put writers remained active there.
On the technical front, the market can be seen trading in a rising channel with the formation of higher bottoms.
In the upcoming sessions, the bias is likely to remain in favour of bulls and we expect the market to rally towards its all-time highs.
On the downside, immediate support is placed at 15,000-14,900 while 15,300 would be the next immediate hurdle
Here are three buy calls for the next 2-3 weeks:
Zee Entertainment Enterprises | LTP: Rs 202 | Target price: Rs 218 | Stop loss: Rs 185 | Upside: 8%
For the last three months, this stock has been moving lower with the formation of a lower bottom pattern as prices fell below their 200-day exponential moving average as well in the recent past.
The stock took support around Rs 180 and recovered sharply to regain the momentum above its short-term moving averages.
At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and is on the verge of a fresh breakout above the neckline of the pattern formation along with a breakout above the 200-day exponential moving average on the daily charts.
Traders can accumulate the stock in the range of Rs 197-202 for the upside target of Rs 218 with a stop loss below Rs 185.
Tech Mahindra | LTP: Rs 994 | Target price: Rs 1,060 | Stop loss: Rs 935 | Upside: 7%
After testing Rs 1,050 in the recent past, the stock witnessed a pullback towards Rs 940 and took support at its 100-day exponential moving average on the daily charts.
After spending nearly four weeks in the range of Rs 990-940, the stock has now managed to give a fresh breakout after a prolonged consolidation.
The breakout can be seen with rising volumes. Prices are holding well above their short and long-term moving averages as well.
Traders can accumulate the stock in the range of Rs 980-993 for the upside target of Rs 1,060 with a stop loss below Rs 935.
Larsen & Toubro | LTP: Rs 1,452.60 | Target price: Rs 1,562 | Stop loss: Rs 1,350 | Upside: 8%
This week, the stock has given a fresh breakout after a prolonged consolidation of two months.
The stock was seen a fluctuation in a broader range of Rs 1,340-1,440 since March with prices sustaining well above their 200-day exponential moving average on the daily interval.
On the technical front, the stock has now formed a rounding bottom pattern on the daily charts after the formation of the double bottom pattern.
Follow-through buying has been observed in the stock after the breakout as rising volumes with a rise in price confirms a long build-up in the prices.
Traders can accumulate the stock in a range of Rs 1,430-1,450 for the upside target of Rs 1,562 with a stop loss below Rs 1,350.
(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.
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