Pravesh Gour, Senior Technical Analyst at Swastika Investmart
Indian equity markets extended their gains where Nifty manages to end above key trendline resistance; however, 17,770 is an immediate and critical hurdle that needs to be crossed to dismiss the formation of lower highs. If Nifty manages to take out the 17,770 level, then we can expect a swift rally to 18,000–18,200 zone. On the downside, 17,500 is an immediate base, while 17,300–17,250 is a key demand zone.
Bank Nifty also managed to come above key trendline resistance of 41,250, where the 100-day moving average of 41,650 is an immediate hurdle. Above this, we can expect a rally towards 42,500–43,000 zone. On the downside, the 50-DMA (days moving average) around 40,600 is an immediate support level, while 40,200–40,000 is a key demand zone.
Here are three buy calls for next 2-3 weeks:
Navin Fluorine International: Buy | LTP: Rs 4,478 | Stop-Loss: Rs 4,220 | Target: Rs 4,924 | Return: 10 percent
The counter is coming out of a long consolidation with strong volume and has witnessed a breakout of a triangle pattern. The overall structure of the counter is very classical on the daily chart. The pattern suggests an immediate target of Rs 4,700, while it has the potential to move further upside till the Rs 4,900+ level.
On the downside, a cluster of moving averages formed a base at Rs 4,220, which will act as an immediate support level. MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
Mold Tek Technologies: Buy | LTP: Rs 287 | Stop-Loss: Rs 260 | Target: Rs 326| Return: 14 percent
The counter is coming out of a triangle pattern formation on the daily chart, while on a weekly basis it has witnessed a breakout of a Bullish Flag formation with a huge volume. The overall structure is very lucrative, as it trades above its all-important moving averages.
On the upside, Rs 300 is an immediate resistance area; above this, we can expect a run-up towards Rs 320 levels in the near term. On the downside, Rs 260 is major support for any correction.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
KPR Mill: Buy | LTP: Rs 617 | Stop-Loss: Rs 570 | Target: Rs 704 | Return: 14 percent
The counter has been travelling in a long consolidation range from Rs 480 to Rs 640 for the past 10 months. It has also witnessed a breakout of a long trend line with strong volume. A cluster of moving averages formed a base at Rs 570 levels, making the counter lucrative on a long-term basis.
On the higher side, Rs 650 acts as susceptible levels; above this, we can expect a long move towards Rs 700+ in the shorter to longer timeframe, while on the lower side, Rs 570 serves as an important support during any correction.
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