The Nifty50 is trying to find its feet near a strong support zone of 16,850-16,600 after a brutal fall. The market was looking much oversold as Put-Call ratio (PCR) slipped below the 0.7-mark and FIIs' long exposure in the index futures dipped below 45 percent, therefore, a bounce back is due.
Technically, 16,800 is long-term trendline support and a previous demand zone while 200-DMA (daily moving average) is placed around 16,600 level, therefore we can expect a pullback rally from here.
On the upside, the 17,500-17,600 area will be the first resistance zone while above 17,800, we will get confidence that the market has reversed and is ready to go higher.
Here are three technical buy calls for next 2-3 weeks:
State Bank of India: Buy | LTP: Rs 514.65 | Stop-Loss: Rs 480 | Target: Rs 575 | Return: 12 percent
The counter is showing strong relative strength where it took support at 20-DMA in recent pullback then formed a bullish Engulfing candlestick formation on the daily chart and is ready to resume its strong bullish momentum.
Rs 490-480 is a strong demand zone as it is a cluster of important moving averages. Momentum indicator RSI (relative strength index) took support at 50-level and now witnessing positive crossover. Rs 520-540 are immediate resistance levels while Rs 575 looks like a near-term target.
Praj Industries: Buy | LTP: Rs 414 | Stop-Loss: Rs 360 | Target: Rs 500 | Return: 21 percent
The counter has witnessed a breakout of long consolidation or a bullish flag formation to resume its long-term bullish trend where it took support at 20-DMA in a recent pullback with a bullish candlestick formation.
It is trading above its all-important moving averages with a positive bias in momentum indicators. It is likely to start the next leg of the rally where the Rs 380-340 zone has become base while the upside is open for bigger targets where Rs 500 is an immediate target.
Minda Corporation: Buy | LTP: Rs 202.8 | Stop-Loss: Rs 188 | Target: Rs 230 | Return: 13 percent
The counter is in strong bullish momentum where it has given a breakout of bullish flag formation and retested that with bullish Engulfing candlestick formation. It manages to close above all important moving averages where ADX (Average Directional Index) is trading above the 30 mark to support the strength of the trend where RSI is bouncing back from the support of 50.
On the downside, the recent low around Rs 180 looks like a strong base while Rs 230 is an immediate target on the upside.
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