On short-mid term charts, Nifty50 is moving with lower highs and lows formation indicating that the short-term trend on the index remains bearish.
For past few sessions, index is moving in the range of 16,200-16,800 with wild intraday swings. It has strong overhead resistance in the zone of 16,800-17,027 (gap zone) along with the 200-day simple moving average (SMA) placed at 16,931.
The trend continues to be weak till index stays below 17,000-mark. A break below 16,200 will escalate the selling pressure and the index can drift towards 15,900 followed by 15,500 levels.
Here are three buy calls for next 2-3 weeks:
Wipro: Buy | LTP: Rs 570 | Stop-Loss: Rs 525 | Target: Rs 665 | Return: 17 percent
Wipro after making a life high of Rs 740 in October 2021 saw a sharp correction wherein the stock corrected nearly 27 percent to make a low of Rs 537.
Currently the stock seems halted its fall and has taken support at the 61.8 percent Fibonacci retracement level (Rs 530).
In the recent week, the stock breached above the 3-week high and has not corrected unlike the weakness in Nifty which indicates strength in this counter.
We expect the stock to outperform and move higher towards Rs 630 followed by Rs 665. A strict stop-loss of Rs 525 should be followed for this trade.
Coforge: Buy | LTP: Rs 4,678.40 | Stop-Loss: Rs 4,480 | Target: Rs 5,200 | Return: 11 percent
Coforge has broken out a falling wedge pattern with above average volumes. The stock has recaptured above its 20-day SMA (Rs 4,518) with strong momentum in prices.
The relative strength index (RSI) indicator plotted on daily charts formed a bullish momentum divergence and the RSI has moved above the 50 mark.
The stock looks ready to move higher immediately towards Rs 4,940 and a break above the same can take the stock to Rs 5,200. We recommend to follow a stop-loss of Rs 4,480 on daily closing basis.
Muthoot Finance: Buy | LTP: Rs 1,423.75 | Stop-Loss: Rs 1,320 | Target: Rs 1,610 | Return: 13 percent
On long term charts, Muthoot Finance is moving with higher highs and lows formation. The stock has formed a CIP formation (Change in Polarity) in the zone of Rs 1,320-1,340 and continues to bounce from the same levels.
The RSI indicator formed a bullish hinge near the 40 mark and is moving higher confirming our analysis. Going ahead, we expect the stock to move higher towards Rs 1,550 followed by Rs 1,610 levels.
We recommend to follow a stop-loss of Rs 1,320 on daily closing basis.
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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