The market has continued its upward trend for the fourth straight session, with both the Sensex and Nifty reaching new five-month highs. The Sensex and Nifty are now just one percent away from their all-time high levels.
The Nifty Bank and Midcap Index have achieved record closing highs for the second consecutive session. The Sensex has experienced a rise of 123 points, closing at 62,969, while the Nifty has gained 35 points to reach 18,634.
The Nifty index has successfully surpassed the significant barrier of 18,442, indicating positive market sentiment. However, in the range of 18,633–18,696, there exists an immediate supply zone, where we may witness some consolidation or profit booking. If Nifty manages to break above this range, it is likely to move towards its all-time high.
On the downside, there is a support zone between 18,450 and 18,400, which could act as a cushion in case of any downward movement. Additionally, the 20-day moving average (20-DMA) at 18,300 holds significant importance as a key support level.
BankNifty has achieved a new all-time high, with 44,500 acting as an immediate resistance level. If BankNifty manages to surpass this hurdle, the next resistance levels to watch out for are 44,700 and 45,000.
On the downside, there is an immediate support zone between 44,150 and 44,000. A breach below this zone may result in profit booking towards 43,700/43,400 levels.
Here are three buy calls for next 2-3 weeks:
Dreamfolks Services: Buy | LTP: Rs 574 | Stop-Loss: Rs 540 | Target: Rs 644 | Return: 12 percent
The counter has witnessed a breakout of the triangle formation after a long consolidation. It has also successfully come out of the listing date high of Rs 550 with huge volume. It is trading above all important moving averages.
The structure of the counter becomes so lucrative for long-term investors. The momentum indicator MACD (moving average convergence divergence) is sustaining the current strength, and the RSI (relative strength index) is also poised favourably.
It retested its breakout level of Rs 550 and started its new leg of the rally towards a new all-time high. On the upside, Rs 600 is an immediate hurdle; above this, we can expect a move towards Rs 640.
On the downside, a cluster of moving averages at around Rs 540 is a strong demand zone during any correction.
RBL Bank: Buy | LTP: Rs 163 | Stop-Loss: Rs 150 | Target: Rs 180 | Return: 10 percent
It has witnessed a breakout of a triangle formation on the daily chart, accompanied by significant volume. Breakouts from chart patterns, such as triangles, are often seen as bullish signals, indicating a potential continuation of the upward trend.
The high volume during the breakout further reinforces the significance of this move. The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
It has a psychological resistance level of Rs 170. If the price manages to break above the Rs 170 resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of Rs 180 or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 150.
Sundram Fasteners: Buy | LTP: Rs 1,098 | Stop-Loss: Rs 1,050 | Target: Rs 1,194 | Return: 9 percent
The counter is coming out of 21 days of consolidation with huge volume. The overall structure of the counter is very classical on the daily chart. The pattern suggests an immediate target of Rs 1,144, while it has the potential to move further upside till Rs 1,174.
On the downside, a breakdown level of Rs 1,050 will act as a strong base. Most of the momentum indicators are positive.
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