The Indian market continued its bull-run for the second consecutive session after the Budget with Nifty ending above 14,600 on February 2.
Nifty has surged more than 7 percent in the last two sessions as participants gave a thumbs up to the Union Budget.
On the derivative front, Call writers at 14,000 and 14,200 strikes triggered short-covering which pushed Nifty towards 14,600 levels.
At the current juncture, Put writers are getting active at 14,200 and 14,300 strikes while Call writers are seen shifting towards 15,000 strikes.
We believe the bullish momentum may continue in the Indian markets and any dip in the prices should be utilised to take fresh longs.
On the higher side, a decisive move above 14,700 will once again add follow-up buying in the index which could take it towards 14,900 and 15,000 levels as well.
Here are three buy calls for the next 2-3 weeks:
Exide Industries | LTP: Rs 201.95 | Target price: Rs 225 | Stop loss: Rs 180 | Upside: 11%
The stock has been consistently moving higher on the charts with the formation of higher bottoms.
Besides, it is holding well-above its 200-day exponential moving average on the weekly charts which is placed at Rs 190.
At the current juncture, the stock has been witnessing seesaw moves within the range of Rs 190-205 for the last four weeks.
However, this week, some long build-up can be witnessed in the stock as suggested by the price-volume action.
On the shorter timeframe, the stock has given a breakout above the falling trendline of the downward sloping channel which suggests the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 197-202.
For the last seven weeks, the stock has been trading in a broader range of Rs 210-240 with prices holding well above the 200-day exponential moving average on the daily charts.
At the current juncture, the stock has given a breakout above the key resistance of Rs 240 after a prolonged consolidation.
The breakout can be seen with marginally higher volumes. The price-volume action along with positive divergences on secondary oscillators suggests the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 236-243.
ITC | LTP: Rs 218.45 | Target price: Rs 241 | Stop loss: Rs 200 | Upside: 10%
For the last nearly eight weeks, the stock has been trading in a broader range of Rs 200-215 with prices holding well above their 200-day exponential moving average on the daily charts.
At the current juncture, the stock has formed a triple bottom pattern on the daily interval and given a breakout above the key resistance of Rs 218 this week.
The breakout can be seen with marginally higher volumes. The price-volume action along with positive divergences on the secondary oscillators suggests the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 215-219.
(The author is a senior technical analyst at SMC Global Securities)
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