The Nifty index has been firmly held by bears, indicating their strong control over the market. The index is currently facing significant resistance at the level of 18,400, which has proven to be a challenging barrier to overcome.
The ongoing battle between bulls and bears has resulted in the index trading within a consolidated range between 18,200 and 18,400 levels. However, a break above or below this range has the potential to trigger trending directional moves in the market.
Traders and investors should closely monitor the index for a potential breakout or breakdown, as it may indicate a shift in market sentiment and the beginning of a new trend.
Bank Nifty closed with selling pressure, breaking below the previous consolidation level. The Relative Strength Index (RSI) is in a bearish crossover, indicating a negative sentiment.
The support level is placed at 43,500; a fall below 43500 may trigger a further correction in the Bank Nifty. Resistance levels are situated at 43,700 and 44,000, where Call writers are waiting for their positions.
Here are three buy calls for the next 2-3 weeks:
LIC Housing Finance: Buy | LTP: Rs 376.2 | Stop-Loss: Rs 360 | Target: Rs 390-400 | Return: 6 percent
After posting its results, the stock witnessed a correction, but no significant follow-up move was observed. Currently, the stock is holding a support level of Rs 360, indicating the presence of active bulls in the market.
On the smaller time frame, buying activity is visible, and there are signs of a breakout. If short covering occurs, it is expected to drive the stock to higher levels of Rs 390 to Rs 400.
Laurus Labs: Buy | LTP: Rs 335 | Stop-Loss: Rs 310 | Target: Rs 360-380 | Return: 13 percent
The stock has experienced a breakout on the daily chart, accompanied by a sharp surge in trading volumes. This breakout indicates a significant change in the stock's price movement.
The momentum indicator RSI has also generated a buy crossover, confirming the shift in momentum toward the upside.
The stock has a lower-end support level at Rs 310, providing a foundation for potential price movements. On the upside, the stock has potential targets at Rs 360 and Rs 380, suggesting possible further gains.
Engineers India: Buy | LTP: Rs 108.55 | Stop-Loss: Rs 104 | Target: Rs 115-118 | Return: 9 percent
The stock has experienced a consolidation breakout on the daily chart, indicating a potential shift in its price trend. It has been able to sustain its price above the moving averages, suggesting a positive sentiment among market participants.
Furthermore, the relative strength index (RSI) has shown a bullish crossover, signaling a potential upward movement in the stock's price. On the higher end, there is a possibility for the stock to reach Rs 118. A support level is identified at Rs 104.
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