Last week, Nifty50 had formed an indecisive candle pattern on the weekly charts and in the current week, it is forming small bearish candle. Since last 3 weeks, the Nifty has been forming Inside Week candle patterns indicating rangebound movement for the index for the short to medium term.
On the daily charts, the Nifty has been sustaining below its 20-day SMA (18,019) since last few days which shows resistance at higher levels.
However, the momentum indicator like RSI (relative strength index) is sustaining near 50 levels on the daily charts which indicates neutral sentiment for the index for the short to medium term.
We believe, Nifty could be rangebound between 18,200 and 17,600 levels. It has a resistance placed at 18,200 followed by 18,345 and 18,604. On the flip side, the support levels would be 17,600 and 17,450 levels.
Here are three buy calls for next 2-3 weeks:
Birlasoft: Buy | LTP: Rs 475.05 | Stop Loss: Rs 435 | Target: Rs 543 | Return: 14.3 percent
Birlasoft has given a strong consolidation breakout with a volume confirmation which has been forming since last 5 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 (simple moving average) 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 514 levels (50 percent extension level of Rs 215 – Rs 457 projected from Rs 393) followed by Rs 543 mark (61.8 percent extension level of Rs 215 – Rs 457 projected from Rs 393).
The stop loss for this trade set up would be Rs 435 levels of closing basis.
Apollo Hospitals Enterprises: Buy | LTP: Rs 5,733.95 | Stop Loss: Rs 5,198 | Target: Rs 6,520 | Return: 14 percent
Apollo Hospitals has given a strong breakout after taking a strong support at 20-week SMA and made a fresh life time high at Rs 5,844 levels which shows strong positive undertone of the stock for the medium to long term. The breakout is backed by the strong volume confirmation indicating the strength of the upward move.
The momentum indicators and the technical indicators all point towards the possibility of the prices moving higher towards the Rs 6,520 mark immediately (61.8 percent extension level of Rs 1,047 – Rs 5,198 projected from Rs 3,955), if this level is breached, we might see the prices move towards Rs 7,217 (78.6 percent extension level of Rs 1,047 – Rs 5,198 projected from Rs 3,955).
The stop loss for this trade set up would be Rs 5,198 levels of closing basis.
L&T Technology Services: Buy | LTP: Rs 5,675.50 | Stop Loss: Rs 5,350 | Target: Rs 6,233 | Return: 10 percent
The stock has been making fresh life time highs consistently since December 2020 which shows strong positive undertone of the stock. In the current week as well the stock has made fresh life time high at Rs 5,744 mark. On the daily charts, the stock has been consistently sustaining above its 20-day SMA since May 2021 indicating positive strength of trend.
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 toward the Rs 6,233 (61.8 percent extension level of Rs 2,476 – Rs 5,548 projected from Rs 4,335) levels and eventually towards Rs 6,750 (78.6 percent extension level of Rs 2,476 – Rs 5,548 projected from Rs 4,335).
Investors can accumulate LTTS at this point and hold for a target of Rs 6,233 and Rs 6,750 with a stop loss of Rs 5,350 on closing basis.
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