Hot Stocks | Double-digit return in Cummins India, Trent, Tata Power possible in short term. Here's why

The Nifty has immediate resistance placed at 17,490 and 17,795 levels. The downside support for the index is placed at 17,000 (Cluster of support that is 200-Day SMA, Gap Support) followed by 16,830 and 16,555 level.

The Nifty is in a sideways mode, we feel that the Nifty will move in range of 17,000–17,490 levels in the coming days. It has a strong support at 17,000 mark. If it breaches the 17,000 levels on the downside, then it will move further down till 16,830 and 16,555 levels.

Here are three buy calls for next 2-3 weeks:

Cummins India: Buy | LTP: Rs 1,094 | Stop-Loss: Rs 1,015 | Target: Rs 1,326 | Return: 21 percent

Cummins India is trading at multi-year high levels and giving a Cup-and-Handle pattern breakout on the weekly charts, which has been forming since May 2017. We witnessed a volume pick-up at every rise in a stock price which shows strong bullish undertone of the stock.

On the daily charts, every time the stock has taken a strong support at 200-Day SMA (simple moving average) and bounced back indicating long-term positive strength of the stock.

On the indicator front, the RSI plotted on the weekly time frame has sustained above the 60 mark with a higher top higher bottom pattern, indicating increasing bullish momentum in the prices.

We expect the prices to move higher towards the life-time high of Rs 1,247 after which we might see a move towards Rs 1,326 levels. We recommend a stop-loss of Rs 1,015 on daily closing basis.

Trent: Buy | LTP: Rs 1,277 | Stop-Loss: Rs 1,210 | Target: Rs 1,503 | Return: 18 percent

Trent is maintaining Higher Top Higher Bottom formation on all the time frames like daily, weekly and monthly charts and outperformed the market with sustaining at fresh life time highs. On the daily chart, the stock has given a Horizontal Channel pattern breakout with volume confirmation which has been forming since October 2021.

On the indicator front, the RSI plotted on the weekly chart can be seen placed above the 65 mark and moving higher, indicating increasing bullish momentum in the prices.

We may see the prices move higher towards Rs 1,404 mark. If the prices manage to sustain above Rs 1,404 mark we might see further up move towards the Rs 1,503 level. We recommend a strict stop-loss of Rs 1,210 on daily closing basis.

Tata Power: Buy | LTP: Rs 239.50 | Stop-Loss: Rs 200 | Target: Rs 295 | Return: 23 percent

Tata Power has formed Triple Bottom price pattern at Rs 200 mark since October 2021 and it has also sustained above 20-Week SMA. Although the broader market is showing negative strength in the recent times, the stock is forming Higher Top Higher Bottom pattern since last four weeks indicating bullish undertone of the stock for the short to medium term.

The RSI indicator plotted on the daily charts is forming higher top higher bottom and sustaining above 55 mark indicating positive momentum of the stock.

We expect the stock to move higher towards Rs 267 and if it manages to cross above Rs 267 then eventually it will move towards Rs 295 levels. One should maintain a strict stop-loss of Rs 200 on daily closing basis for this trade.

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