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Hot Stocks | Here is why you should bet on Fortis Healthcare, Ambuja Cements, HCL Technologies in short term

After a continuous fall in Ambuja Cements, prices have found support near its 200-week exponential moving average and in terms of candle stick counter has formed a Bullish Hammer pattern on the weekly time frame.

March 10, 2022 / 07:25 AM IST
 
 
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Two back-to-back positive candles on the benchmark Nifty50 after a Bullish Engulfing candlestick pattern on the daily time frame indicates a bullish confirmation of the said pattern.

The index has registered an immediate bottom at 15,700 levels and has formed a Bullish Butterfly Harmonic pattern on the daily time frame, and prices have closed above its PRZ (potential reversal zone).

The momentum oscillator RSI (14) has formed a double bottom pattern near 30 levels which is the oversold level for the oscillator and further that witnessed a sharp rally in the prices.

The volatility gauge indicator India VIX is showing a sideways movement from the last five trading sessions and is founding a strong resistance at 30 levels. India VIX on March 9 has drifted near to four percent and closed at 27.31 but still reading above its 21-day exponential moving average (DEMA) which is placed near 25.40 levels.

The broader structure for the Nifty is still negative whereas the immediate resistance for the Nifty is capped near its 21 DEMA which is placed near 16,750 levels. A break below 16,000 will escalate the selling pressure and the index can drift towards 15,700 levels.

Here are three buy calls for next 2-3 weeks:

Fortis Healthcare: Buy | LTP: Rs 264 | Stop-Loss: Rs 250 | Target: Rs 289 | Return: 9 percent

The prices are trading in a lower low lower high formation since second week of January and prices continued to trade within the falling channel pattern on the daily time frame.

Fortis has witnessed a falling trend line breakout on the higher side and closed convincingly above its support zone and formed a Bullish Engulfing candlestick pattern on the weekly scale.

On the daily chart, after the breakout prices are consolidating above its support zone and have formed a basing formation which indicates an accumulation in the counter.

Momentum oscillator RSI (14) has rebounded sharply from its oversold levels and has also given a horizontal trend line breakout above 45 levels on the daily interval.

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HCL Technologies: Buy | LTP: Rs 1,182 | Stop-Loss: Rs 1,150 | Target: Rs 1,245 | Return: 5 percent

The prices were trading in a symmetrical triangle pattern for the past two months and have formed a trend line resistance at Rs 1,175 levels.

HCL Technologies has broken out of a symmetrical triangle pattern at Rs 1,195 levels on March 9 and the prices have registered a decisive breakout that suggests a change in the trend from sideways to upside. Stock is trading above its 21, 50 & 100-day exponential moving averages on the daily time frame, which is positive for the prices in the near term.

The MACD (moving average convergence divergence) indicator is reading above its centerline with a positive crossover above its signal line. Momentum oscillator RSI (14) is reading near 60 levels which indicates positive momentum will like to continue ahead.

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Ambuja Cements: Buy | LTP: Rs 291.65 | Stop-Loss: Rs 277 | Target: Rs 315.50 | Return: 8 percent

After a continuous fall in the stock, prices have found support near its 200-week exponential moving average and in terms of candle stick counter has formed a Bullish Hammer pattern on the weekly time frame.

On the daily chart momentum oscillator RSI (14) is reading at extremely oversold levels which is below 25 and the sharp bounce back from the current levels cannot be ruled out. We have also seen an above average volume activity from last couple of session indicates buying at lower levels in the counter.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
RohanPatil Rohan Patil is the Technical Analyst at Bonanza Portfolio Ltd.