By Kunal Shah, senior technical & derivative analyst at LKP Securities
The Nifty continued to trade within the broader range of 19,300 and 19,500. On the daily timeframe, the headline Nifty index has been fluctuating between the boundaries set by the 21-day exponential moving average (EMA) at 19,471 and the 50-day EMA at 19,281.
Looking ahead, the Nifty is likely to maintain this rangebound movement as long as it remains within these established thresholds. A significant breakthrough above the 19,500 mark could potentially trigger a rally towards higher levels.
The Bank Nifty index exhibited a powerful bullish resurgence, effectively overpowering the bearish sentiment. Notably, buying activity was observed in both private and public sector banks, showcasing strong confidence. The critical resistance at 44,200 was convincingly breached, supported by substantial trading volumes, leading to an extension of the upward movement towards 44,500.
The overall market sentiment remains bullish, with the index poised for further gains. As long as the index sustains above the level of 44,200, the trajectory is likely to continue upwards, potentially targeting the 45,000 level.
On the downside, a crucial support is situated at 44,000, where significant Put writing was evident on both the weekly and monthly expiries. This support level could act as a buffer against downward movements.
Here are three buy calls for next 2-3 weeks:
Bank of Maharashtra: Buy | LTP: Rs 39.65 | Stop-Loss: Rs 36 | Targets: Rs 43-45 | Return: 13.5 percent
Bank of Maharashtra's stock has exhibited a notable breakthrough, surpassing the previous swing high with substantial trading volumes. This suggests a sustained momentum in the current trend.
The momentum indicator, RSI (relative strength index), is also playing a significant role, as it remains above the critical level of 70, affirming the bullish sentiment.
In terms of support and potential gains, the stock has a solid foundation at the lower end, around Rs 36. This level is likely to act as a cushion in case of any downward movement.
Looking ahead, the stock has promising upside targets at Rs 43 and Rs 45, which could be achieved if the current bullish trend persists.
Jubilant Pharmova: Buy | LTP: Rs 462.35 | Stop-Loss: Rs 435 | Targets: Rs 500-520 | Return: 12.5 percent
Jubilant Pharmova's stock has shaped a bullish pennant pattern, accompanied by an increase in trading volumes. This pattern suggests a continuation of the prior upward trend. Reinforcing this bullish sentiment, the momentum indicator RSI has executed a positive crossover, signifying growing momentum in favour of the bulls.
The stock's support level is at Rs 435, which is likely to function as a protective base in case of any price decline.
Looking ahead, the stock shows potential for upside gains, with targets set at Rs 500 and Rs 520. These levels could be attained if the current bullish trajectory maintains its course.
One 97 Communications: Buy | LTP: Rs 904.75 | Stop-Loss: Rs 890 | Targets: Rs 946-958 | Return: 6 percent
Paytm has experienced an upward movement following a period of consolidation on the daily chart, indicating an increase in optimism. Additionally, the stock is currently trading above a crucial moving average.
The daily relative strength index (RSI) shows a bullish crossover and is on the rise. Looking at the upper range, there is a resistance level at Rs 958, while on the lower end, a support level is established at Rs 890.
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