Although the Nifty kept up a strong, bullish momentum, it ended Tuesday's trading session with an indecisive candlestick formation, followed by five strong bars on the daily chart.
Point 19,440 could be an immediate hurdle, and above this, 19,600 is the next target level. On the downside, if it slips below 19,300, then some profit-booking could be seen with 19,000 being a key support level.
Bank Nifty also ended with a Doji candlestick formation, where 45,000 is an important support level, and below this, we can expect some profit-booking towards the 44,500 level. On the upside, 45,700 and 46,000 are the next resistance levels.
Here are three buy calls for next 2-3 weeks:
Jammu & Kashmir Bank: Buy | LTP: Rs 65.60 | Stop-Loss: Rs 59.50 | Target: Rs 77.80 | Return: 18 percent
The counter has experienced a breakout of an Inverse Head and Shoulder pattern on the longer timeframe. It has emerged from a period of extended consolidation and has also broken a triangle pattern on the daily chart. The breakout is accompanied by significant trading volume and has closed above the breakout level, marking a significant milestone after a span of 7 months.
The counter's overall structure is highly favourable, as it is currently trading above all its important moving averages. The RSI (relative strength index) shows positive momentum, and the MACD (moving average convergence divergence) supports the counter's current strength.
It has a psychological resistance level of Rs 70. If the price manages to break above the Rs 70 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 75+ or even higher.
On the downside, if there is a correction, the major support level is identified at Rs 59.50
Ganesh Housing Corporation: Buy | LTP: Rs 414 | Stop-Loss: Rs 390 | Target: Rs 464 | Return: 12 percent
The counter has experienced a breakout of a Triangle pattern formation accompanied by high trading volume. It has also surpassed a significant level of resistance at around Rs 400. Additionally, the counter's overall structure is appealing as it is currently 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.
On the upside, Rs 450 is an important psychological level; above this, we can expect a move towards Rs 460+. On the downside, a cluster of moving averages at around Rs 390 is a strong demand zone during any correction.
Hero MotoCorp: Buy | LTP: Rs 3,030 | Stop-Loss: Rs 2,860 | Target: Rs 3,374 | Return: 11 percent
The structure of the counter looks very impressionable for long-term investors, as it has experienced a breakout of a W-formation on the weekly timeframe and has surpassed the neckline resistance at around Rs. 3020 with significant trading volume.
On the upside, Rs 3,200 is an important psychological level; above this, we can expect a move towards Rs 3,350+. On the downside, a cluster of moving averages at around Rs 2,860 is a strong demand zone during any correction.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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