The Nifty stayed in the red for the second straight session, dragged by weak global cues, on August 22.
The long-term chart indicates that any sharp downward correction can be considered a buy-on-dips opportunity. On the downside, an immediate support is placed around 17,330 levels, which is 23.6 percent retracement of the entire rise from the bottom of June (15,183) to Friday's high (17,992). The 20-day EMA (exponential moving average) support is also coinciding with the retracement levels and, therefore, on the downside, the Nifty is likely to find strong support around 17,300-17,400 levels.
We believe that this is a running correction in the overall uptrend. Therefore, our advice is to use any correction from here on towards 17,300-17,400 levels to accumulate longs with the stop-loss of 17,000 levels.
Here are three buy calls for next 3-4 weeks:
Bajaj Electricals: Buy | LTP: Rs 1,246 | Stop-Loss: Rs 1,170 | Target: Rs 1,325-1,400 | Return: 12 percent
The stock price has broken out on the daily chart with higher volumes to close at highest level since January 2022. It has also broken out from the downward sloping trendline on the weekly chart. Primary trend of the stock is positive as it is trading above its 100 and 200 days EMA.
Momentum Oscillators – RSI (relative strength index - 11) and MFI (money flow index - 10) have placed above 60 on the daily chart and sloping upwards, indicating strength in the current uptrend of the stock. Plus DI (directional index) is trading above minus DI while ADX (average directional index) line is placed above 25, indicating momentum in the current uptrend. One can buy the stock in the range of Rs 1,246-1,200.
Grindwell Norton: Buy | LTP: Rs 2,096 | Stop-Loss: Rs 1,990 | Target: Rs 2,220-2,300 | Return: 10 percent
The stock price has broken out on the daily chart where it closed at all-time high levels. It has already broken out from the downward sloping trendline on the weekly chart. RSI and MFI oscillator are placed above 60 and rising upwards on the daily chart, indicating strength in the current uptrend. One can buy the stock in the range of Rs 2,093-2,050.
Century Textiles and Industries: Buy | LTP: Rs 847 | Stop-Loss: Rs 800 | Target: Rs 910-940 | Return: 11 percent
The stock price has broken out from the symmetrical triangle on the weekly chart. Primary trend of the stock is positive as it is trading above 20 and 50 and 100 week moving averages.
Oscillators like RSI and MFI are placed above 50 and rising upwards, indicating strength in the current uptrend. One can buy the stock in the range of Rs 847-830.
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