Santosh Meena, Head of Research at Swastika Investmart
The Nifty is facing resistance at 16,700 level after building a strong base in the 15,700-16,000 zone. The level 16,700 is a gap area that was created on May 5; above this, we can expect further strength towards 16,900, otherwise some selling pressure can't be ruled out where 16,500-16,400 is an immediate demand zone, while 16,250-16,200 is the next support area.
Bank Nifty is also facing resistance at the psychological level of 36,000 mark after a stellar rally from the 33,000 level. On the downside, 35,000-34,800 is an immediate demand zone, while 34,500-34,300 is the next support area. If Bank Nifty manages to trade above 36,000 level then we can expect a rally towards 36,700-37,000 zone.
Globally, the market has an eye on US President Joe Biden and Fed chief Jerome Powell meeting while boiling crude oil could be a sentiment dampener.
The behaviour of FIIs will be important as they bought on Monday after a long gap, however, their figures on Tuesday should not be considered because of MSCI rebalancing.
On the domestic front, the market will react to Q4 GDP numbers whereas monthly auto sales numbers and monsoon will be important triggers.
Here are three buy calls for next 2-3 weeks:
Astrazeneca Pharma: Buy | LTP: Rs 3,007.55 | Stop-Loss: Rs 2,825 | Target: Rs 3,350 | Return: 11 percent
The counter has bottomed out around Rs 2,500 level with the double bottom formation and now it is breaking out neckline with heavy volume. It is trading above its all-important moving averages and closed above its 200-DMA (day moving average) which may generate further buying interest towards Rs 3,300-3,400 levels.
On the downside, the breakout level of Rs 2,920 will act as immediate support on a closing basis. If we look at the momentum indicators then there is a strong positive divergence in most of them.
SKF India: Buy | LTP: Rs 3,598.10 | Stop-Loss: Rs 3,400 | Target: Rs 4,000 | Return: 11 percent
The overall trend for this counter is bullish where it has witnessed a breakout of downsloping channel formation to end its short-term correction.
It is trading above its all-important moving averages and closed above its 200-DMA which may generate further buying interest towards the Rs 4,000 level. There is flag formation on the weekly time frame and most of the momentum indicators are positively poised.
Welspun Corp: Buy | LTP: Rs 226.3 | Stop-Loss: Rs 199 | Target: Rs 265 | Return: 17 percent
The counter is in strong bullish momentum where it took support in the cluster of 50 and 20-DMA after a pullback and now it is resuming its bullish momentum.
We can expect this counter to break its previous swing high where Rs 265 is an immediate target.
On the downside, 20-DMA of Rs 200 is an immediate support level. Momentum indicators are positively poised to support the strength of the trend.
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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