The overall structure of the market is weak and it is struggling to sustain at higher levels, however, the Nifty has held on to the key support level of 15,700.
If we look at the derivative data, the long exposure of foreign institutional investors (FIIs) in the index future dipped to 12 percent, the lowest ever, whereas the Put-Call ratio is also in an oversold zone of 0.73, therefore, a pullback can't be ruled out.
On the upside, 15,900-16,050 is the immediate resistance level, while on the downside, if the Nifty slips below 15,671, 15,500-15,450 is the next support zone.
The direction of global markets ahead of the US Fed reserve meeting is a key factor along with FII behaviour, the dollar and crude oil.
Here are three buy calls for next two-three weeks:
Phoenix Mills: Buy | LTP: Rs 1,120.8 | Stop-Loss: Rs 1,050 | Target: Rs 1,240 | Return: 11 percent
The counter is in a classical uptrend, outperforming the market. It is trading above all important moving averages and in an upsloping channel formation.
Momentum indicators are positively poised to support the strength in the trend. On the upside, Rs 1,190-1,240 are immediate target levels, while the 50-day moving average (DMA) of Rs 1,080 is the immediate support.
Siemens: Buy | LTP: Rs 2,400 | Stop-Loss: Rs 2,280 | Target: Rs 2,570 | Return: 7 percent
The counter is consolidating above its 200-DMA with relative strength and has formed a bullish Pin Bar candlestick at 200-DMA, a bullish indication.
The momentum indicator relative strength index (RSI) is witnessing a positive crossover at a support of 50 and the moving average convergence divergence (MACD) is also trading above the centerline.
On the upside, Rs 2,500-2,570 is the immediate target level, while on the downside, 200-DMA of Rs 2,300 is the immediate support.
Varun Beverages: Buy | LTP: Rs 773.7 | Stop-Loss: Rs 735 | Target: Rs 850 | Return: 10 percent
The counter is witnessing a breakout of the Bullish Flag formation to resume the classical uptrend. It is respecting its 20-DMA placed at Rs 735.
Most momentum indicators are positively poised and indicate further rally in the counter.
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