Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the weekly chart, Nifty50 has formed an outside week candlestick pattern, which tells that the volatility is rising of the current uptrend.
On the daily timeframe, the index has crossed the swing high of 18,442.15 (November 16, 2022) which opens the room for record high level.
RSI (relative strength index) on the daily timeframe has shown a bullish reversal illustrating strong bullish momentum.
The Nifty has an immediate resistance levels placed at 18,604 (record high) followed by 19,000 (psychological level). On the other side, it has strong support level placed at 18,350 (January 2022 high) followed by 18,100 (gap support).
As per the overall the price structure and evidence supported by indicators, we feel that Nifty can move Higher till the level of 18,604 followed by 19,000 mark.
Here are three buy calls for next 2-3 weeks:
Kirloskar Ferrous Industries: Buy | LTP: Rs 319.8 | Stop-Loss: Rs 290 | Target: Rs 380 | Return: 19 percent
Looking at the broader picture of Kirloskar Ferrous, we can observe that the prices have started to get into higher high, higher low formation showing positive undertone.
Prices in the first week of November 2022 had given a breakout from the double bottom pattern, indicating beginning the trend to the upside.
The stock now has shown a bounce on the upside while taking support from the 14-week EMA (exponential moving average). The 14-week EMA have acted as a strong variable support to the prices.
RSI on the weekly timeframe is rising and has sustained well above 50 mark reflecting the rising momentum of the underlying.
Going ahead we expect the prices to go higher till the level of Rs 380 where the stop-loss must be Rs 290 on the closing basis.
Fertilizers and Chemicals Travancore: Buy | LTP: Rs 146.50 | Stop-Loss: Rs 135 | Target: Rs 170 | Return: 16 percent
FACT is currently trading near its record highs which tells that the stock already is in strong momentum.
The stock in the latest week gave a breakout from the Inverse Head & Shoulder pattern indicating continuation of prior uptrend.
The Bollinger band have started to expand on daily timeframe indicating rising volatility for uptrend.
RSI on the weekly timeframe has shown a breakout as well, which again confirms the higher Momentum of the underlying.
Going ahead we expect the prices to go higher till the level of Rs 170 where the stop-loss must be Rs 135 on the closing basis.
Rashtriya Chemicals and Fertilisers: Buy | LTP: Rs 122 | Stop-Loss: Rs 105 | Target: Rs 160 | Return: 31 percent
RCF is at the 52-week high level indicating the presence of strong price momentum, and the room to move higher.
The stock has given a multi-year breakout which points towards the beginning of the fresh trend on the upside.
The Bollinger band has started to expand with high volumes, illustrating rising volatility of the prices.
RSI on the weekly and daily timeframe is above 50 mark reflecting the strong momentum in the prices.
Going ahead we expect the prices to go higher till the level of Rs 160 where the stop-loss must be Rs 105 on the closing basis.
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