The Nifty closed above the 18,350 level, followed by some volatile and rangebound trading sessions. A close above 18,350 has paved the way for new highs to be set in the coming days. On the upside, 18,611 and 18,888 will be the next target levels. On the downside, 18,250 is an immediate support level, while 18,080–17,950 is a key support area.
Bank Nifty is outperforming and holding well above the 42,000 level. On an immediate basis, we can expect a target of 43,000, whereas it has potential to move towards 44,000. On the downside, 42,000–41,700 is a strong demand zone.
If we look at the derivative data, then the Put-Call ratio and FIIs' long exposure in index futures are still at comfortable levels despite no correction in the market. As per the option chain, there is no major hurdle till the 19,000 mark, whereas 18,300–18,200 area has become a strong Put base.
The fall in the dollar index is supporting the market, and there is further scope for a correction in the dollar index, which is giving confidence to the bulls.
The market will continue to look for global factors amid a lack of local cues, but stock and sector-specific movement will continue.
Here are three buy calls for next 2-3 weeks:
Praj Industries: Buy | LTP: Rs 433 | Stop-Loss: Rs 400 | Target: Rs 500 | Return: 15 percent
The counter is in strong bullish momentum, having come out of more than one year of consolidation with a bullish Flag formation. Since August 2022, it has been making higher highs and lower lows, with an immediate base at a cluster of 200 and 100 DMA (days moving average).
On the upside, Rs 450–460 is an immediate resistance area; above this, we can expect a move towards Rs 500 level. It is trading above all of its important moving averages.
The momentum indicator RSI (relative strength index) is positively poised above the 50-mark, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.
IRB Infrastructure Developers: Buy | LTP: Rs 256 | Stop-Loss: Rs 230 | Target: Rs 300 | Return: 17 percent
IRB is again gaining momentum after building a strong base at Rs 200 mark. On the weekly chart, we can observe a breakout of the Flag formation, while there is a breakout of the bullish Inverse Head and Shoulders formation on the daily chart.
Now, a 20-DMA of Rs 240 is an important support level. On the upside, Rs 270 is an immediate horizontal resistance line; above this, bullish momentum may take it towards Rs 300 mark.
It is trading above all of its important moving averages with a positive bias in momentum indicators.
IIFL Finance: Buy | LTP: Rs 421.6 | Stop-Loss: Rs 360 | Target: Rs 525 | Return: 24 percent
The counter has been moving in an upsloping channel formation for the last 18 months, and there is an upside breakout of this channel with strong volume. During a small pullback, it formed a bullish Flag formation, and now it is breaking out to resume its northward journey.
The previous breakout of Rs 390, which coincides with the 20-DMA, has become an immediate and strong support level, while Rs 350 is the next major support level at any correction.
On the upside, its previous all-time high of Rs 442.75 is an immediate hurdle; above this, it is likely to head towards Rs 500-525 levels.
RSI is positively poised above the 60 mark, whereas ADX (average directional index) is trading above the 30 mark to support the strength of the trend.
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