The Nifty witnessed a smart rebound from the support of 18,345 and managed to close above its 20-DMA of 18,514 with a breakout of a falling channel formation. However, the 9-DMA of 18,625 is an immediate hurdle; above this, we can expect a short-covering rally towards 18,725, 18,810, and 18,888 levels.
A 20-DMA of 18,514 will act as an immediate support level, while 18,345 and 18,133 are the major support levels.
From a derivatives perspective, the market is neutral, while institutional flows are also muted.
The Bank Nifty is continuing its leadership where 44,000 is an immediate psychological hurdle; above this, 44,444 and 44,800 are the next target levels. On the downside, the 10-DMA is acting as an immediate support, while the 20-DMA of 43,000 is the major support level.
Here are three buy calls for next 2-3 weeks:
RITES: Buy | LTP: Rs 383 | Stop-Loss: Rs 355 | Target: Rs 444 | Return: 16 percent
The counter has witnessed a breakout of a triangle pattern formation on the daily chart. It has formed a base at around Rs 355–360 levels. The structure of the counter is very lucrative, as it is trading above all of its moving averages.
On the upside, Rs 400 is an immediate psychological resistance level; above this, we are expecting a move towards the Rs 444+ level.
On the downside, Rs 370 is major support, and below this, Rs 355 is the next important support.
Apar Industries: Buy | LTP: Rs 1,710 | Stop-Loss: Rs 1,550 | Target: Rs 2,044 | return: 20 percent
The counter is in a classical uptrend and made an all-time high closing on the daily chart. On the daily chart, it is moving in an uptrend channel formation pattern, with the previous swing high around Rs 1,727 acting as an immediate level; above this, we can expect Rs 2,044 in the near term.
On the downside, the previous breakout level of Rs 1,610 is an immediate support level, while Rs 1,550 is also a strong demand zone.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
Karnataka Bank: Buy | LTP: Rs 164 | Stop-Loss: Rs 140 | Target: Rs 204 | return: 24 percent
The counter is in a strong uptrend, and it has given a breakout of a flag pattern formation on the daily chart. It has witnessed a multi-month breakout on the longer time frame.
It is trading above its all-important moving averages with higher highs and higher lows.
On the upside, Rs 174 is the immediate horizontal resistance; above this, we can expect Rs 200+ levels in the near term. On the downside, a cluster of moving averages (9, 20-SMA) forms the base at around Rs 140.
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