Santosh Meena, Head of Research at Swastika Investmart
The Nifty respected its 200-DMA (day moving average) after a pullback from 100-DMA and witnessed a smart rally on March 22. There is a high possibility of a breakout of 100-DMA which is currently placed at 17,360 level; above this, we can expect a rally towards 17,490-17,800 levels.
On the downside, 17,000 has become near term base while 16,800 is a critical support level.
Bank Nifty respected its 20-DMA after a pullback and respected a decent bounce. However 36,600-37,000 is a critical supply zone; above this, we can expect a sharp short-covering rally towards 38,000 and 39,000 levels. On the downside, 35,500 has become near term base while 35,000 is a critical support level for the index.
Indian markets have relative strength and may continue to do well if global cues remain a little supportive.
Here are three buy calls for next 2-3 weeks:
Intellect Design Arena: Buy | LTP: Rs 819 | Stop-Loss: Rs 750 | Target: Rs 950 | Return: 16 percent
The counter is in a strong uptrend where it is breaking out a symmetrical triangle formation to resume its uptrend.
On the downside, it has created a strong base around Rs 600 level and managed to move above its all-important moving averages.
Momentum indicators are supporting the current bullish momentum. On the upside, Rs 850-880 is an immediate resistance zone; above this, we can expect a move towards Rs 1,000 level.
Chalet Hotels: Buy | LTP: Rs 304 | Stop-Loss: Rs 275 | Target: Rs 350 | Return: 15 percent
The counter is making higher highs and higher lows formation and it has witnessed the breakout of a Bullish Cup and Handle formation that may propel further bullish momentum.
It is trading above its all-important moving averages with a positive bias in most of the momentum indicators. Rs 280-275 is an immediate demand zone while Rs 330 is an immediate hurdle then Rs 360 is the next resistance.
Sundram Fasteners: Buy | LTP: Rs 892 | Stop-Loss: Rs 830 | Target: Rs 990 | Return: 11 percent
The counter is outperforming the entire auto pack where it is breaking out symmetrical triangle formation after five months of consolidation.
It has created a strong base at Rs 780 level and managed to close above its all-important moving averages. On the upside, Rs 928 is an immediate hurdle then Rs 990 is the next target level.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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