The Nifty is facing resistance near downsloping trendline resistance placed at around 18,150 after a smart rally, therefore, we could see some profit-booking where 17,800 will be the first support level, while 17,600-17,500 area has become a strong demand zone at any correction.
On the upside, if the Nifty manages to sustain above 18,150, it may head towards a fresh all-time high where 18,350 will be an intermediate hurdle.
The headline indices may see some pause or pullback but the broader market is likely to outperform where traders will have multiple opportunities.
The overall structure is very strong, however, most of the shorts are out of the system and FIIs long exposure in the index future is above 75, therefore we can expect some profit booking. Any pullback, however, will be a good buying opportunity to take fresh entry for a ride towards an all-time high.
The Bank Nifty is facing resistance near the 38,750-39,000 zone, while 37,500 will be the immediate support level and 37,000-36,700 is a strong demand zone.
On the upside, if it manages to take out the 39,000, we can expect a move towards the 40,700, where 39,500 will be an intermediate hurdle.
Here are three buy calls for the next two-three weeks:
Tata Power Company: Buy | LTP: Rs 274 | Stop-Loss: Rs 255 | Target: Rs 315 | Return: 15 percent
The counter is coming out of six months of consolidation with a breakout of symmetrical triangle formation to resume its strong uptrend where we can expect a move towards Rs 350, while Rs 315 will be an intermediate target.
On the downside, a breakout level of Rs 358 will act as support now. Momentum indicators are also positively poised to support the current bullish momentum.
Bharat Electronics: Buy | LTP: Rs 219 | Stop-Loss: Rs 205 | Target: Rs 245 | Return: 12 percent
The counter is consolidating for the last many months and it is likely to witness a breakout of a bullish Cup and Handle formation for the fresh expansion.
On the downside, 20-DMA of Rs 211 is the immediate support, while Rs 227 is the immediate hurdle. Above this, we can expect a rally towards the Rs 245. The moving average convergence divergence (MACD) is trading above the centerline, whereas the relative strength index (RSI ) is positively poised.
Thermax: Buy | LTP: Rs 2,013 | Stop-Loss: Rs 1,880 | Target: Rs 2,300 | Return: 14 percent
The counter is in a strong uptrend where it is respecting its 50 and 2-DMA after a minor pullback and is ready to move above the previous swing high of Rs 2,175, which may lead to fresh bullish momentum towards Rs 2,300.
On the downside, the Rs-1900 level has become a strong support and momentum indicators are also suggesting a positive bias.
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