Indian equity markets have started to outperform yet again after three days of correction where the Nifty respected the 17,500-17,400 demand zone. On the upside, 18,100 is acting as a key hurdle; above this, the Nifty will negate the double top formation and may resume its bullish momentum for a fresh all-time high.
On the downside, if the Nifty slips below 17,400 level then 17,300-17,150 will be immediate support levels while 17,000 is a sacrosanct support mark as a 200-DMA (daily moving average).
The option data is also indicating the range of 17,500-18,000 for the time being. The market is eying the outcome of the US Federal Reserve meeting as a 75 basis points rate hike is already discounted while any surprise hike of 100 basis points may disturb the mood of global markets.
Bank Nifty is outperforming and respecting its 9-DMA. On an immediate basis, 41,800-42,000 is an immediate resistance zone; above this, we can expect a rally towards 42,500-43,000 levels. On the downside, 40,500 is an immediate support level then 39,700 is a sacrosanct support mark.
Here are three buy calls for next 2-3 weeks:
Vesuvius India: Buy | LTP: Rs 1,598 | Stop-Loss: Rs 1,420 | Target: Rs 1,934 | Return: 21 percent
The counter is in a classical uptrend and is now breaking out of ascending triangle formation to resume its uptrend. The breakout coincides with rising volume and sustains above the breakout level.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, a cluster of moving averages around Rs 1,420 level will act as a strong support level.
CG Power and Industrial Solutions: Buy | LTP: Rs 254 | Stop-Loss: Rs 223 | Target: Rs 304 | Return: 20 percent
The counter is coming out of 1-month of consolidation with strong volume. The overall structure of the counter is very lucrative and we can expect a long run up to Rs 280-300 levels in the near term.
On the downside, Rs 223 will act as a strong base whereas 9 and 20-DMA will act as a strong support level.
Most of the momentum indicators are positively poised, however, some of them are in a little overbought zone.
Cochin Shipyard: Buy | LTP: Rs 418 | Stop-Loss: Rs 375 | Target: Rs 504 | Return: 20 percent
The counter has witnessed a primary trend-line breakout on the weekly chart with strong volume followed by a breakout of Bullish Flag formation.
The stock is trading above its important moving averages. On the upside, Rs 440 is an immediate resistance area; above this, we can expect a run-up towards Rs 504 levels in the near term. On the downside, if it breaks Rs 400, then Rs 375 is the next critical level.
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