Both Nifty and Bank Nifty witnessed a breakout of the Bullish Flag formation, where 17,800–17,860 is an immediate resistance zone for the benchmark index. Above this, we can expect a rally towards 18,100–18,200 zone. On the downside, the 200-DMA (day moving average) around 17,600 will act as a strong support level.
Bank Nifty is near the critical supply zone of 42,700–43,000. Above this, we can expect a rally towards 43,500 and 44,000 levels. On the downside, 42,000 has become a near-term floor.
This week is an earning-heavy week, and we also have April's F&O expiration; therefore, volatility may increase.
Here are three buy calls for next 2-3 weeks:
Fertilisers and Chemicals Travancore: Buy | LTP: Rs 346 | Stop-Loss: Rs 320 | Target: Rs 394 | Return: 14 percent
The counter is in bullish momentum and forming a Bullish Flag formation to continue this momentum for further upside, where the previous swing high around Rs 390 is an immediate level. Above this, we can expect Rs 394 levels in the near term.
On the downside, the previous breakout level of Rs 326 is an immediate support level, while Rs 320 is also a strong demand zone. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
RITES: Buy | LTP: Rs 380 | Stop-Loss: Rs 355 | Target: Rs 434 | return: 14 percent
The counter is coming out of a long consolidation with strong volume and has witnessed a breakout of the ascending triangle pattern. The overall structure of the counter is very classical on the daily chart. The pattern suggests an immediate target of Rs 400, while it has the potential to move further upside till the Rs 434 level.
On the downside, a cluster of moving averages at Rs 355 will act as an immediate support level. MACD (moving average convergence divergence) is supporting the current strength, whereas momentum indicator RSI (relative strength index) is also positively poised.
HBL Power Systems: Buy | LTP: Rs 112 | Stop-Loss: Rs 105 | Target: Rs 126 | Return: 12 percent
The counter has witnessed a breakout of the triangle formation on the weekly chart, but it has retested its previous breakout at the Rs 85–86 level after hitting a fresh 52-week high. The overall structure of the counter looks lucrative as it trades above its all-important moving averages.
On the higher side, Rs 120 acts as susceptible levels; above this, we can expect a long move towards Rs 125+ in the shorter to longer timeframe, while on the lower side, Rs 105 serves as an important support 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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