Indian markets began this week with a negative bias as bears took charge and dampened sentiment on the back of weak global cues.
Selling pressure was seen in banking, metal and pharmaceutical counters while IT shares witnessed some buying interest.
On the derivatives front, call writers added hefty open interest at 11,400 and 11,500 strikes while put writers added marginal open interest at 11,300 and 11,200 strikes.
On the technical front, secondary oscillators suggest that the market could trade in a volatile manner with Nifty likely to consolidate in the range of 11,200 to 11,500 levels and Bank Nifty within the range of 22,300-23,300 levels in the coming sessions.
For the upcoming week, we expect that the 11,400 to 11,500 range would remain crucial and would act as a major hurdle for Nifty.
However, bulls could make a comeback only if Nifty manages to give a decisive move above 11,500 levels. Till then, stock-specific action would remain on the radar.
Here are three buy calls for the next 3-4 weeks:
Asian Paints | Buy | LTP: Rs 1,957.40 | Target price: Rs 2,110 | Stop loss: Rs 1,860 | Upside: 8 %
This stock has been consistently maintaining its uptrend and can be seen trading in a rising channel on
broader charts.
However, for the last six trading sessions, prices have been consolidating in the range of Rs 1,900-2,000 which has formed a triangle pattern on daily charts.
The positive divergences on secondary oscillators suggest that the stock is likely to give upside breakout which could add further buying momentum to the prices towards new highs.
Traders can accumulate the stock in the range of Rs 1,950-1,960 for the upside target of Rs 2,110.
TV Today Network | Buy | LTP: Rs 232.50 | Target price: Rs 257 | Stop loss: Rs 215 | Upside: 11%
This stock has been consistently maintaining its bull run ever since it gave a breakout above Rs 200.
Additionally, prices are holding well above the 200-days exponential moving average on daily charts with consistent buying seen at support levels.
This week, we have observed a fresh breakout in the stock on broader charts with additionally higher volumes which suggest next up-move in the prices.
Traders can accumulate the stock in the range of Rs 231-234 for the upside target of Rs 257.
This week, the stock has given a fresh breakout with big volumes on the charts and also made a fresh 52-week high of Rs 4,970 level.
However, due to profit-booking, it once again retraced back towards Rs 4,230.
On the broader charts, the stock is maintaining its uptrend and can be seen trading in a rising channel with the formation of a higher high and higher low pattern.
The price-volume breakout this week suggests that more upside is still due in the prices and any dip should be considered to enter fresh.
Traders can accumulate the stock in the range of Rs 4,200-4,250 for the upside target of Rs 5,175.
(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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