Nifty closed at 12,690.80 on November 12. All the positive news flow with respect to US Elections and second-quarter results are over and we do not have any major news flow to drive the markets from the current levels.
Bank Nifty has also moved up 40 percent since the September expiry lows and multiple resistance near 28,800-29,200 levels would cap the upside.
We expect the markets to consolidate and it may turn weak from here if any negative news flow or global market volatility emerges.
The outperformance of mid and small-caps could continue and we remain positive on the Midcap100 index to test 18,500 levels.
Pharma could remain an outperformer as it has witnessed double bottom near 11,000 levels, witnessing a sharp up-move.
Here is one buy and two sell calls for the next 2-3 weeks:
Lupin | Buy | LTP: Rs 897.40 | Target price: Rs 1,030 | Stop loss: Rs 825 | Upside: 15%
The stock has bounced from its long-term 200-day average after a sharp decline from the recent high of Rs 1,125.
RSI has moved higher from its lower range and may resume its uptrend with positive price action.
In case of a major decline, multi-month support at Rs 830-840 should act as strong support for the stock.
Mahindra & Mahindra (M&M) | Sell | LTP: Rs 634.05 | Target price: Rs 575 | Stop loss: Rs 670 | Downside: 9%
The stock has failed to cross its 200-week average placed at Rs 665 over the last 2 months and witnessed reversal.
The stock’s key technical indicators on the near-term timeframe chart are negatively poised which could drag the stock towards Rs 575. Any jump above Rs 670 will negate a down-move in the stock.
Axis Bank | Sell | LTP: Rs 598.10 | Target price: Rs 540 | Stop loss: Rs 635 | Downside: 10%
The stock has witnessed a sharp up-move post the breakout of its 200-day average and has closed in a Doji candle near the top of the range.
Daily RSI has also reversed downwards indicating a reversal and at 80 levels it indicates a limited upside from the current levels.
On the higher side, multiple resistance is placed at Rs 625-635, being the long-term monthly averages.
(The author is Senior Research Analyst at Reliance Securities)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.