The recent upward momentum was observed after a bounce from the 50 percent Fibonacci retracement level, which was calculated based on the prior advance from 15,183.40 in June 2022 to the high of 18,887.60 in December 2022.
On the weekly timeframe, the Nifty Index has maintained a formation of Higher Highs and Higher Lows which illustrates the positive undertone of the prices.
On the daily time frame the prices have sustained well above the key moving averages of 50 & 200-day EMA (exponential moving average) which also acted as variable supports to the latest price swing.
The index has a strong support at 17,500 (key support) followed by 17,300 (key support). While on the higher side the mark of 18,134 (key resistance) followed by 18,265 (key resistance) are crucial levels to watch out for.
The index may continue its upward momentum till 18,134 followed by 18,265. Our Bullish view shall be negated if we see prices sustaining below 17,500 level.
Here are three buy calls for next 2-3 weeks:GMR Airports Infrastructure: Buy | LTP: 45.10 | Stop-Loss: Rs 43 | Target: Rs 51.50 | Return: 14 percentGMR Airports has maintained a level above Rs 34 consistently since early October 2021, indicating significant strength despite a market correction.
The stock has recently given a breakout of the Cup & Handle pattern, indicating the beginning of an upward trend.
On the daily timeframe, the stock is above key moving averages of 50, 100 & 200-day EMA, confirming an uptrend. The RSI (relative strength index) on the daily timeframe is moving in sync with prices, reflecting rising momentum.
It is expected that prices will continue to rise until Rs 51.5 level, with a strict stop-loss at Rs 43 on a closing basis.
The stock formed a solid base around Rs 2,950, indicating a positive trend in the prices. The Rectangle pattern breakout confirms a reversal to the uptrend, which was preceded by a short-fall in the pattern.
A golden cross of 50 and 200-day EMA in late March 2023 confirms the reversal. The weekly Relative Strength Index (RSI) breakout reflects rising momentum in the prices.
These technical indicators suggest that the stock prices will likely continue to rise towards the level of Rs 3,950 where the stop-loss must be Rs 3,160 on the closing basis.
The stock of Gujarat State Fertilizers & Chemicals (GSFC) has shown a bounce at Rs 121 level, forming a solid foundation at this point. This indicates a favourable outlook for the prices.
The recent breakout of the Descending Triangle pattern indicates beginning of the prior uptrend.
On the daily timeframe, the stock has been consistently trading near the upper Bollinger Band, indicating increased volatility.
Additionally, the RSI on the weekly as well as on the daily timeframe has sustained well above the 50 mark which reflects the rising momentum in the prices.
In conclusion, based on these technical indicators, it is anticipated that the stock will continue to rise towards Rs 185 level with a suggested stop-loss at Rs 145 on a closing basis.
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