The Nifty is stuck in the 16,850-17,450 range for the last many days but has managed to outperform most other markets and if global cues improve, we can expect a bounce back.
If the Nifty manages to take out 17,450, a decent rally towards 18,000 can be expected, with 17,600 acting as an intermediate hurdle. On the downside, if the index surrenders 16,850, there is a risk of any major weakness, where 16,600-16,400 will be the immediate support.
If look at the data, foreign institutional investors’ long exposure in the index future stands at 34 percent, thus it is in oversold territory whereas the Put-Call ratio of 0.99 is also heading towards the oversold territory.
The Bank Nifty is respecting the support level of 35,500, however, 36,700-37,000 is a critical supply zone. Above this, we can expect a short-covering rally towards 38,000.
The outcome of US Fed policy will be a critical factor in the direction of global markets, whereas corporate earnings will lead to stock-specific movements in the Indian market.
Here are three buy calls for next two-three weeks:
Thermax: Buy | LTP: Rs 2,146 | Stop-Loss: Rs 2,030 | Target: Rs 2,400 | Return: 12 percent
The counter is in a strong uptrend where it has given a breakout of a bullish Cup and Handle formation to resume its uptrend. It is taking support at 20-DMA (day moving average) after a small pullback and moving in an upsloping channel formation.
On an immediate basis, it has the potential to move towards Rs 2,400 level while Rs 2,500 is also a possible target.
On the downside, Rs 2,050-2,030 has become an immediate and strong demand zone. Momentum indicator RSI (relative strength index) is witnessing positive crossover after taking support at the 50 mark.
Easy Trip Planners: Buy | LTP: Rs 413.5 | Stop-Loss: Rs 385 | Target: Rs 475 | Return: 15 percent
The counter is seeing strong bullish momentum and is ready to move higher after consolidating above its 20-DMA. It is likely to witness a breakout of the Bullish Flag formation that will generate further thrust for higher moves.
On the downside, the recent swing low of Rs 386 will act as an immediate support and Rs 360 the next support. Momentum indicators are positively poised to support the current strength of the trend.
NLC India: Buy | LTP: Rs 89 | Stop-Loss: Rs 83.5 | Target: Rs 100 | Return: 12 percent
The counter was moving in upsloping channel since March 2020 and is now breaking out into a fresh expansion phase, where Rs 94-100 are immediate target levels.
On the downside, Rs 84 is the immediate support and Rs 80-77 a critical demand zone. Most momentum indicators are positively poised, however, some are a bit overbought.
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