Last week, the Nifty50 formed Bullish Harami candle pattern on the weekly charts and in the current week it is sustaining near its previous week high indicating positive bias for the index for the short to medium term.
On the daily charts, Nifty has been sustaining below its 20-Day SMA (simple moving average) for last few days which shows resistance at higher levels.
However, the momentum indicator RSI (relative strength index) sustaining near 50-levels on the daily charts indicates neutral sentiment for the short to medium term.
We believe, the Nifty will be rangebound between 18,200 and 17,600. It has a resistance placed at 18,200 followed by 18,345 and 18,604 levels. On the flip side, the support levels would be 17,600, 17,450 and 17,055 levels.
Here are three buy calls for next 2-3 weeks:
Avenue Supermarts: Buy | LTP: Rs 4,997.75 | Stop Loss: Rs 4726 | Target: Rs 5,900 | Return: 18 percent
The stock had entered in a corrective phase after made a all-time High at Rs 5,900 mark and moved lower towards Rs 4,351, this coincides with multiple touch points level and 50 percent retracement level of Rs 2,676 to Rs 5,900. The stock have found strong support of CIP (Change in Polarity) near Rs 4,351 levels and bounced back sharply with the bullish formation of Higher Top Higher Bottom pattern and once again sustaining at 3 week high levels which shows strong positive undertone of the stock.
The momentum indicator like RSI is sustaining above 60 mark indicating strong positive momentum of the stock. As per price pattern, we feel that the stock prices gain momentum and move higher towards the Rs 5,420 levels and eventually towards Rs 5,900 (all-time high).
Investors can accumulate D-Mart at this point and hold for a target of Rs 5,420 and Rs 5,900 with a stop loss of Rs 4,726 on closing basis.
Reliance Industries: Buy | LTP: Rs 2,554.55 | Stop Loss: Rs 2,450 | Target: Rs 2,910 | Return: 14 percent
Reliance has formed CIP formation (Change in Polarity) near Rs 2,450 levels which coincide with 38.2 percent retracement level of previous advance Rs 2,016 – Rs 2,751 levels, indicating the stock has limited downside with strong support cluster near Rs 2,450 mark.
Currently the stock is resuming its primary uptrend after taking strong support at 50-day SMA (simple moving average) on the daily charts which shows strong positive sentiments of the stock for medium to long term.
The momentum indicators and the technical indicators all point towards the possibility of the prices moving higher towards the Rs 2,751 mark immediately which is a Life Time High level, if this level is breached, we might see the prices move towards Rs 2,910 level eventually.
The Stop loss for this trade set up would be Rs 2,450 levels of closing basis.
KPIT Technologies: Buy | LTP: Rs 403.70 | Stop Loss: Rs 370 | Target: Rs 448 | Return: 11 percent
KPIT Technologies has given a strong consolidation breakout with a volume confirmation which has been forming since last 3 months and made a fresh Life Time High which shows strong bullish undertone of the stock for medium to long term. The stock has been taking strong support at 20-week SMA since June 2020 indicating the stock is in long term bullish phase.
The momentum indicator RSI has sustained above 60 levels on all the time frames which confirms strong positive momentum of the stock for the medium to long term.
Looking at the prices action and the momentum indicators and other technical parameters we believe this stock has a lot of upside potential left.
Going ahead, we expect the prices will move towards Rs 448 levels (50 percent extension level of Rs 89 – Rs 385 projected from Rs 300) followed by Rs 483 mark (61.8 percent extension level of Rs 89 – Rs 385 projected from Rs 300).
The stop loss for this trade set up would be Rs 370 levels of closing basis.
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