The Indian market ended at record closing high on July 15. Nifty settled with a gain of 70 points, or 0.44 percent, at 15,924.20.
RSI plotted on the weekly and the daily timeframes are placed above the 50-mark and moving higher, indicating bulls are in control of the trend.
If the index sustains above the 15,915-mark, we might see it rally to 16,000-16,100, followed by 16,400.
Going ahead, the key support level to watch out for from a short-term perspective is 15,600. If the index breaches below this level, we can expect further downside towards 15,450 and 15,100-15,145.
Here are three buy calls for the next 3-4 weeks:
Granules India | LTP: Rs 370.45 | Target price: Rs 437 | Stop loss: Rs 342 | Upside: 18%
This stock, on the higher timeframe, can be seen forming a higher high higher low pattern, indicating the long-term trend of the stock remains strongly bullish.
On the weekly timeframe, it can be seen consolidating for the past couple of weeks after finding support near the 38.2 percent retracement level of the rise from Rs 114 to Rs 437.
The stock breached above the downward sloping trendline and has been sustaining above the same since the past couple of sessions.
Going ahead, Rs 418 level will act as a resistance level. If it sustains above this level, we can see it move higher and test Rs 437 level, followed by Rs 456.
The key level to watch for on the downside is Rs 342, followed by Rs 295.
Welspun India | LTP: Rs 124.95 | Target price: Rs 140 | Stop loss: Rs 107 | Upside: 12%
This stock can be seen forming a higher high higher low pattern on the monthly time frame and moving higher for the past few months.
On the weekly timeframe, it broke out of a consolidation phase and has been forming a higher high higher low pattern for the past three weeks.
Going ahead, Rs 128.40 level will act as a resistance level. If it sustains above this level, we can see it move higher and test the Rs 140-mark.
The key levels to watch for on the downside are Rs 107, followed by Rs 97.50.
Wipro | LTP: Rs 578.35 | Target price: Rs 625 | Stop loss: Rs 542 | Upside: 8%
Wipro, on the monthly timeframe, can be seen forming a higher high higher low pattern and moving higher for the last few months.
The prices have been moving between the upper band and the 20-day simple moving average since May 2020, indicating the presence of bullishness in the trend.
Going ahead, the key resistance level to watch out for is Rs 586. If this level is breached, we can expect further up-move towards Rs 605-Rs 625.
The key levels to watch out for on the downside are Rs 542, followed by Rs 524.
(The author is a Technical Analyst, GEPL Capital)Disclaimer: The views and investment tips expressed by 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.