Rupak De, Senior Technical Analyst at LKP Securities
The Nifty index experienced a decline as selling pressure emerged at higher levels on May 31. At the lower end, there was a previous congestion high. The current trend is expected to remain sideways to positive unless the index falls below the 18,500 level.
On the higher end, there is resistance at 18,650. However, if the index decisively falls below 18,500, it may trigger additional selling pressure.
Meanwhile, the Bank Nifty index experienced selling pressure from bears during the first half of the trading session. However, buying activity was witnessed in the last hour of trading, driven by MSCI index rebalancing.
The index has support at 43,500, on the other hand, resistance is expected at 44,500, which is a significant level where both Put and Call writing is visible.
Here are three buy calls for next 2-3 weeks:
Borosil Renewables: Buy | LTP: Rs 545.65 | Stop-Loss: Rs 520 | Target: Rs 600 | Return: 10 percent
The stock price has managed to stay above its 200-day moving average (200DMA), indicating strength in the stock. Furthermore, the price has experienced a breakout from a falling trendline, accompanied by increased trading volume.
On the weekly chart, the stock has resumed its upward trend following a short period of consolidation. The upside target for the stock is Rs 600, while it has support at Rs 520.
PI Industries: Buy | LTP: Rs 3,616.80 | Stop-Loss: Rs 3,500 | Target: Rs 3,900 | Return: 8 percent
The stock of PI Industries is currently on the verge of a breakout from a sideways trend. This indicates that the stock's price has been consolidating within a range, and a potential breakout could lead to a new price movement.
On the daily chart, the momentum indicator RSI (relative strength index) has shown a positive crossover, suggesting a shift towards bullish momentum.
The stock has a support level at Rs 3,500, which can act as a foundation for potential price movements. On the upside, the stock has potential upside target at Rs 3,900, indicating possible further gains.
LTIMindtree: Buy | LTP: Rs 4,998.40 | Stop-Loss: Rs 4,770 | Target: Rs 5,700 | Return: 14 percent
The stock has experienced a double bottom breakout, which is a bullish signal indicating a potential upward movement in price. Additionally, it has been able to sustain above its near-term 21-day exponential moving average (21EMA), further strengthening the positive outlook.
The recent monthly closing of the stock is the best it has been in fourteen months, suggesting strong momentum. Taking these factors into account, the stock appears favourable for short to medium-term investments.
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