Santosh Meena, Head of Research, Swastika Investmart
The Nifty50 is trading at the near-critical supply zone of 17,600-17,800 after bouncing off from the support of 16,800 where, if it manages to cross 17,800 level, we can expect a short-covering rally towards 18,300-18,600 in the coming days, while 18,000 will be an intermediate hurdle.
On the downside, the Budget day's low of 17,244 will act as a sacrosanct support level. Below this, we can expect any weakness towards 17,000-16,800 levels.
Bank Nifty looks strong as it trades above its all-important moving averages, however, 38,800-39,100 is an immediate resistance zone. Above this, we can expect a short-covering rally towards 40,000-41,000 levels.
On the downside, 37,500 is the immediate support while 36,500-36,000 is a critical support zone.
Here are three buy calls for next 2-3 weeks:
Aavas Financiers: Buy | LTP: Rs 3,113.90 | Stop-Loss: Rs 2,900 | Target: Rs 3,500 | Return: 12 percent
The counter was consolidating in the Rs 2,300-3,000 range for the last six months and now it is breaking out to gain fresh bullish momentum. It was respecting its 20-DMA (daily moving average) beautifully and before breaking out the bullish flag formation on the daily chart, it formed a bullish pin bar candlestick formation that is an indication of good strength in the counter.
Most of the momentum indicators support the current strength and the cluster of moving averages in the Rs 2,900-2,700 zone has become a strong support zone.
Sun Pharma Advanced Research Company: Buy | LTP: Rs 327.95 | Stop-Loss: Rs 303 | Target: Rs 375 | Return: 14 percent
The counter is forming a bullish flag formation with a base at 20-DMA. A decisive breakout of Rs 333 level will lead to a fresh leg of rally towards Rs 375-400 level while Rs 310-303 has become a strong base.
Momentum indicators ADX (average directional index) is trading above 40 levels whereas RSI witnessed positive crossover after taking support at 50 mark.
Capri Global Capital: Buy | LTP: Rs 568.90 | Stop-Loss: Rs 520 | Target: Rs 660 | Return: 16 percent
The counter is coming out of more than six months of consolidation to resume its overall bullish trend where we can expect immediate targets of Rs 660-725 levels.
On the downside, the cluster of moving averages in the range of Rs 525-500 has become a strong base. Momentum indicators RSI (relative strength) and ADX are positively poised whereas MACD (moving average convergence divergence) is trading above the centerline.
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