In recent weeks, the Nifty50 index showcased commendable strength, as evidenced by its 'three white soldiers' pattern, reaching a pinnacle with a new record high at 20,222. Yet, over the last two trading weeks, it’s closing below the previous week's lows casts a shadow of negativity on the ongoing trend.
The index hovers around the 12-week EMA (exponential moving average), which may act as a potential support.
The immediate floor for the index lies at 19,490 (aligned with the 12-week EMA), with a subsequent crucial support marker set at 19,300.
Conversely, on its climb, it could encounter barriers at 19,766 (the high of the week) and subsequently at the 20,000 mark, a pivotal resistance point.
Considering the present technical cues and prevailing market mood, a breach below 19,490 on a daily close could trigger a correction, possibly extending to 19,300.
Here are three buy calls for 2-3 weeks:
Godfrey Phillips India: Buy | LTP: Rs 2,115 | Stop-Loss: Rs 2,010 | Target: Rs 2,400 | Return: 13 percent
The stock continues its remarkable upward journey. Since December 2022, the stock has seen a significant adjustment, without showing any signs of lower highs or lower lows.
As it nears its all-time high levels, its sustained positive momentum is evident. Its recent breakout from the Rectangle pattern further highlights its robust bullish outlook.
The stock's upward movement in the past week was bolstered by the 12-week EMA (exponential moving average), aligning with the retest of the rectangle pattern, signifying the inception of an upward trend.
Moreover, the RSI (relative strength index) on the weekly charts has also experienced a breakout, signifying the intensified momentum in its inherent trend.
Going ahead we expect the prices to move higher till Rs 2,400 levels where the stop-loss must be Rs 2,010 strictly on the closing basis.
Indian Overseas Bank: Buy | LTP: Rs 46.35 | Stop-Loss: Rs 45 | Target: Rs 52 | Return: 12 percent
Indian Overseas Bank has been displaying a steady pattern of ascending highs and lows, with increasing volume trends, suggesting a significant momentum propelling its value.
In the beginning of September 2023, the stock made a notable breakthrough from its Rounding pattern, indicating a positive shift in its trajectory. Its current position above both the 12-week and 26-week EMA underscores its bullish momentum.
Furthermore, the RSI's steady climb and its maintenance above the 60 level indicate strong positive momentum in the stock. Going ahead we expect the prices to move higher till Rs 52 where stop-loss must be Rs 45 closing basis.
Triveni Engineering and Industries: Buy | LTP: Rs 387 | Stop-Loss: Rs 365 | Target: Rs 455 | Return: 18 percent
The stock is currently trading at record highs, reflecting a prevailing positive sentiment in the market. On a weekly timeframe, a notable breakout from a Saucer pattern has emerged, indicating a promising outlook for the medium to long term.
Furthermore, a closer look at the daily charts reveals a consistent pattern of forming higher highs and higher lows, accompanied by healthy trading volumes, which further bolsters our bullish sentiment.
Additionally, it's worth noting that the stock price has consistently maintained itself above key moving averages, including the 50, 100, and 200-day simple moving averages (SMA). These moving averages are also showing a positive alignment, providing additional support for our optimistic perspective.
Furthermore, both the weekly and daily RSI indicators are on an upward trajectory and are currently above the 65 level. This indicates substantial positive momentum in the stock's price movement.
Considering these technical indicators, there is a reasonable expectation that the stock may continue its upward trend and potentially reach Rs 455 price levels. However, it's crucial to prioritize effective risk management. Therefore, it is advisable to establish a stop-loss level at Rs 365 on a closing basis.
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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