Vidnyan Sawant, AVP - Technical Research at GEPL Capital
Since the last three weeks, the Nifty50 has been moving in a range of 15,730 – 16,400. The Nifty is sustaining at 23.6 percent Fibonacci retracement level of previous advance from the 7,511 – 18,604 levels. On the daily charts, it has managed to stay above the 16,000 mark since last five days which shows initial sign of short term bottoming out.
On the indicator front, the RSI (relative strength index) plotted on the daily charts is sustaining above 40 mark and making higher top higher bottom formation which shows positive momentum for the short term.
The Nifty has immediate resistance placed at 16,400 and 16,800, followed by 17,105 levels. The downside support for the index is placed at 16,000, 15,671, followed by 15,450 levels.
We feel that the Nifty is in bounce back mode. If the Nifty sustains above 16,400 mark, then it will move towards 16,800 mark in coming days. Our positive view will be negated if it sustains below 16,000 mark.
Here are three buy calls for next 2-3 weeks:
HDFC: Buy | LTP: Rs 2,287.75 | Stop-Loss: Rs 2,190 | Target: Rs 2,565 | Return: 12 percent
HDFC has taken a strong support near Rs 2,060 - 2,100 levels with the formation of Double Bottom pattern which is 61.8 percent Fibonacci retracement level of previous advance from Rs 1,473 to Rs 3,021 levels. The stock is currently trading near five-week high indication positive sentiments of the stock.
On the daily charts, the stock is giving breakout of Cup and Handle pattern at Rs 2,265 levels.
On the indicator front, the RSI plotted on the daily time frame has sustained above 55 mark with a higher top higher bottom pattern, indicating increasing bullish momentum in the prices.
Going ahead, we expect the prices to move at higher levels towards Rs 2,370, post which we might see a move towards Rs 2,565 levels. We recommend a stop-loss of Rs 2,190 on daily closing basis.
TVS Motor Company: Buy | LTP: Rs 708.30 | Stop-Loss: Rs 660 | Target: Rs 813 | Return: 15 percent
TVS Motor has given a breakout of an Inverted Head & Shoulder pattern on the weekly charts. The stock has sustained at five months high, indicating positive undertone of the stock.
On the daily charts, the stock is maintaining higher top higher bottom formation.
On the indicator front, the RSI plotted on all the time frame is sustaining above 60 levels which shows strong positive momentum.
Going ahead we might see the prices move higher towards Rs 760 mark. If the prices manage to sustain above Rs 760 mark we might see further up move towards Rs 813 level.
We recommend a strict stop-loss of Rs 660 on daily closing basis.
ICICI Bank: Buy | LTP: Rs 728.50 | Stop-Loss: Rs 680 | Target: Rs 835 | Return: 15 percent
ICICI Bank has bottomed out at Rs 675 levels with double bottom price formation and CIP formation (Change in Polarity). The stock is sustaining at 3 weeks high with volume confirmation. On the daily charts, the stock has sustained above 50 days SMA (simple moving average - Rs 726).
The RSI indicator plotted on the weekly charts is moving upward and it is sustaining above 50 mark with the formation of higher top higher bottom indicating strong positive momentum of the stock.
We expect the stock to move higher towards Rs 777 and if it manages to cross above Rs 777 then eventually it will move towards Rs 835 levels.
One should maintain a strict stop-loss of Rs 680 on daily closing basis for this trade.
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!
