The Nifty traded in the green for the third consecutive session and scaled a fresh all-time high closing high of 19,712. The Bank Nifty resumed its rise after showing some running corrections. The Nifty has been getting support on its 5-day EMA (exponential moving average) for the last seven trading sessions as Indian markets kept up the rally.
Last week, Nifty broke out from the narrow range of 19,300-19,500 on the upside. The previous resistance of 19,500 is expected to act as a support going forward for the index. Positional support is expected at 19,000-19,100, while positional target is likely to be 20,055, derived from Fibonacci extension levels.
The Bank Nifty has broken out from a bullish 'Flag' pattern on the daily chart and could do well in the coming days. Immediate support for the Bank Nifty can be seen at 44,300-44,500, while its positional target is expected at 47,390.
The Nifty IT index has broken out from the downward sloping trendline on the medium-term charts. Breadth of the market is very strong as percentage of stocks above the 200 DMA are at 79 percent in the NSE500.
Positionally, the Smallcap Index looks good for 7-8 percent upside. MSCI World Market Indices have broken out, which augers well for the Indian markets. The ICE Dollar index has plunged below 100. Falling dollar index is a good sign for the equity markets and bullions.
Considering the technical evidences discussed above, we believe that positional trend of the Indian markets is bullish and dips should be bought in to.
Here are three buy calls for next 2-3 weeks:
Sonata Software: Buy | LTP: Rs 1,066.5 | Stop-Loss: Rs 925 | Target: Rs 1,190 | Return: 11.6 percent
The stock price has broken out from downward sloping trendline on the daily chart. Price breakout is accompanied with jump in volumes. The stock is placed above all important moving averages, indicating bullish trend on all time frames.
Indicators and oscillators like MACD (moving average convergence divergence) and RSI (relative strength index) have turned bullish on its daily charts.
The stock price has been holding higher tops and higher bottoms on weekly and monthly chart. Bullish trend has been seen on all time frames. Indicators and oscillators have turned bullish on weekly charts.
RITES: Buy | LTP: Rs 408 | Stop-Loss: Rs 366 | Targets: Rs 442-470 | Return: 15 percent
On shorter time frame, the stock has broken out from the descending triangle. On longer time frame, stock price has broken out from Cup and Handle pattern on the weekly chart.
Price rise in accompanied by jump in volumes, which confirms the bullish trend. The stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators like MACD and RSI have turned bullish on its daily and weekly charts.
GMDC: Buy | LTP: Rs 178 | Stop-Loss: Rs 164 | Targets: Rs 195-205 | Return: 15 percent
Gujarat Mineral Development Corporation (GMDC) stock price has broken out from last 9-week’s price consolidation with rising volumes. The stock is placed above all important moving averages, which indicates bullish trend on all time frames.
Indicators and oscillators have turned bullish on weekly charts. PSU sector has been outperforming and same is expected to continue.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
