Shitij Gandhi, Senior Technical Analyst, SMC Global Securities
Once again selling pressure in the Indian markets was witnessed as traders look cautious ahead of key decisions by the Federal Reserve and other central banks. The sentiment was dampened as markets weighed the Omicron risks.
On the derivatives front, Call writers added hefty open interest at 17,500 and 17,600 strike, while marginal Put writing was observed at 17,300 and 17,200 strike.
Technical indicators suggest that volatility is likely to grip the market in the upcoming sessions as well. However, the Nifty has completed one leg of correction, after a steep run-up seen last week and now the index is trading near important retracement support levels at 17,200 and 17,100.
The key hurdle would be 17,500 and 17,600 for the upcoming sessions. One can expect a sideways moment and final direction will be clear once we see either side breakout from mentioned range.
Here are three buy calls for next 2-3 weeks:
Greenpanel Industries: Buy | LTP: Rs 429.15 | Stop-Loss: Rs 385 | Target: Rs 480 | Return: 12 percent
From nearly last one month, the stock can be seen consolidating in the range of Rs 360-420 with prices holding well above its short and long term moving averages on the daily and weekly charts.
The stock has formed a rounding bottom formation on short-term charts and indicates a fresh breakout above key resistance level of Rs 420 after a prolonged consolidation phase.
Traders can accumulate the stock in the range of Rs 420-430 for the upside target of Rs 480 levels with stop loss below Rs 385.
Triveni Engineering & Industries: Buy | LTP: Rs 225.35 | Stop-Loss: Rs 195 | Target: Rs 262 | Return: 16.3 percent
Consolidation can be seen in prices in the range of Rs 185-220 from the last two months with the prices maintained well above its long-term moving average on daily and weekly charts. The stock has given a fresh breakout above key resistance level of Rs 220 after a prolonged consolidation phase.
The stock has also formed an ascending triangle pattern on the short-term charts while breakout above cup and handle pattern can be observed on broader charts. Traders can accumulate the stock in range of Rs 220-225 for the upside target of Rs 262 with stop loss below Rs 195.
Birlasoft: Buy | LTP: Rs 505.65 | Stop-Loss: Rs 465 | Target: Rs 561 | Return: 11 percent
The stock tested its 52-week high of Rs 515.85 in yesterday's session. It has also managed to close above its key hurdle level of Rs 500. On daily charts, a fresh breakout above symmetrical triangle pattern can be observed.
The rising volume along with rise in price suggests a long build-up into a stock. The sudden surge in volumes with rise in prices suggests continuation of rally into the upcoming sessions as well. Traders can accumulate the stock in the range of Rs 500-505 for the upside target of Rs 561 with stop loss below Rs 465.
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