Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The Nifty has taken a strong support near 17,000 mark in the post Budget correction and bounced back. From the last couple of sessions, it has maintained Higher Top Higher Bottom formation. On the weekly charts, it has been facing strong resistance near 20 Week SMA (17,616) since last 2 weeks.
The Nifty has immediate resistance placed at 17,600-17,650 zone followed by 17,800 & 18,350 levels. The downside support for the index is placed at 17,000 (multiple touch points) followed by 16,830 level.
Broadly we expect the Nifty to trade in a range of 17,000-17,800 levels. For any further upside, it is important that the index breaks and sustains above 17,800 mark.
Here are three buy calls for next 2-3 weeks:
Canara Bank: Buy | LTP: Rs 258.80 | Stop-Loss: Rs 230 | Target: Rs 360 | Return: 39 percent
Canara Bank has been forming a higher high higher low pattern after bouncing off the 20-week SMA (simple moving average). On the week weekly charts the stock has given an Inverted Head & Shoulder breakout with volume confirmation which shows strong positive undertone of the stock for the medium to long term.
On the indicating front, the RSI (relative strength index) plotted on the weekly time frame has sustained above the 60 mark and is currently moving towards higher level, indicating increasing bullish momentum in the prices.
Going ahead, we expect the prices to move higher towards the previous swing high of Rs 302 post which we might see a move towards Rs 360 levels. We recommend a stop-loss of Rs 230 on daily closing basis.
TV18 Broadcast: Buy | LTP: Rs 74.40 | Stop-Loss: Rs 59 | Target: Rs 100 | Return: 34 percent
TV18 Broadcast has been maintaining bullish pattern of Higher Top Higher Bottom on all the time frames like daily, weekly & monthly charts. The stock has given a Saucer pattern breakout with good volume buildup and it sustained at multi-year high which shows strong positive sentiments for the medium to long term.
In the indicating front the RSI plotted on the weekly chart can be seen placed above the 60 mark and moving higher, indicating increasing bullish momentum in the prices.
Going ahead, we might see the prices move higher towards the Rs 100 mark. If the prices manage to sustain above the Rs 100 mark we might see further up move towards the Rs 125 level.
We recommend a strict stop-loss of Rs 59 on daily closing basis.
GNFC: Buy | LTP: Rs 570.75 | Stop-Loss: Rs 500 | Target: Rs 651 | Return: 15 percent
GNFC has made a fresh life-time high at Rs 568 levels in this week. The stock has given a multi-year breakout with a Breakaway Gap. This up move is backed by huge volume confirmation which shows strong bullish undertone of the stock for the medium to long term.
The RSI indicator plotted on the weekly charts sustained above 60 mark and it has maintained higher top higher bottom formation indication strong positive momentum of the stock.
We expect the stock to move higher towards Rs 601 and if managed to cross above Rs 601 then eventually it will move towards Rs 651 level.
One should maintain a strict stop-loss of Rs 500 on daily closing basis for this trade.
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