On the monthly chart, the Nifty has continued to sustain above previous month's high, which indicates overall bullish undertone in the index.
Nifty has sustained for the first time below the last week's low after a strong rally for past 8 weeks, which indicates some profit booking has happened at higher levels.
On the daily timeframe in the latest trading session the index made an outside candlestick pattern, which indicates rise in the volatility.
Going ahead, the resistance for the Nifty is placed at 17,750 (trend line resistance) and 18,000 (swing high) followed by the key resistance at the level of 18,115. On the other side, the index has its immediate support at the level of 17,350, followed by 17,000 mark.
As per the short term chart pattern, we feel the index may move in the range between 18,000 and 17,350 levels.
Here are three buy calls for next 2-3 weeks:
Zee Entertainment Enterprises: Buy | LTP: Rs 262.40 | Stop-Loss: Rs 237 | Target: Rs 308 | Return: 17 percent
By looking at the weekly chart of ZEEL, prices after downtrend from December 2021 made a base in the form of Inverse Head and Shoulder, which is a bullish pattern.
Prices witnessed a breakout from the above pattern in the previous week which indicated a beginning of trend on the upside. The breakout too was confirmed by high volumes.
Prices on daily timeframe are currently roaming around upper Bollinger band which points that the volatility of the prices for upside is increasing.
RSI (relative strength index) plotted on weekly as well as on daily timeframe is sustaining above 50 mark which tells that prices have strong momentum in it.
We expect the price to go higher till the level of Rs 308 where the stop-loss must be at the level of Rs 237 on the closing basis.
Crompton Greaves Consumer Electricals: Buy | LTP: Rs 410.20 | Stop-Loss: Rs 370 | Target: Rs 500 | Return: 21 percent
By looking at the weekly chart of Crompton, prices after downtrend from December 2021 made a base in the form of Double bottom, which is a bullish pattern.
Post the breakout on second week of July, prices retested the neckline of the pattern and have started to move on upside.
On the daily charts, the prices gave a breakout from Rectangle pattern in the latest trading session which indicated beginning of trend on the upside.
Prices have sustained above Upper Bollinger band which points that the volatility of the prices for upside is increasing.
RSI on weekly timeframe have given a breakout which reflects that the momentum in the prices are rising for upside.
We expect the prices to go higher till the level of Rs 500, where stop-loss must be placed at the level of Rs 370 on the closing basis.
Federal Bank: Buy | LTP: Rs 113.90 | Stop-Loss: Rs 105 | Target: Rs 127 | Return: 11 percent
By looking at the weekly chart of Federal Bank, we can observe that the chart has made a new 52-week high which tells that the prices are in the momentum.
The stock on the third week of July 2022 gave a breakout from Symmetrical Triangle pattern that hinted towards the beginning of the new trend on the upside.
Prices on daily timeframe are currently roaming around upper Bollinger band which points that the volatility of the prices for upside is increasing.
RSI plotted on weekly timeframe is rising and have sustained above 60 mark which tells that prices are rising with higher momentum.
We expect the stock to go higher further till the level of Rs 127 with the stop-loss at Rs 105 on the closing basis.
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