Nifty50 has seen a 754 points rally approximately between November 22 and December 1, 2022. At the current juncture on the weekly scale, Nifty has taken support near 18,450-18,500 and closed around 18,500 mark in its previous trading session.
Also Nifty has reversed from its bearish CRAB pattern on a daily scale.
If Nifty closes above 18,700 on the weekly scale then we may see 19,000 in a couple of weeks' time. But if Nifty closes below 18,400 on the weekly scale then we may see 18,000 in a couple of weeks' time.
Thus, we believe that hedging would be the best weapon to use in the current market situation.
Bank Nifty
Since the last four weeks, we saw 2,500 points acceleration in Bank Nifty and it closed near 43,600 mark. Sustainability above 43,000 might take Bank Nifty near 44,500 in the coming weeks. This view would be negated below 42,500 mark on a weekly closing basis.
Here are three buy calls for next 2-3 weeks:
Macrotech Developers: Buy | LTP: Rs 1,056.4 | Stop-Loss: Rs 999 | Target: Rs 1,155 | Return: 9 percent
For the last 4 months approximately, the said counter is making lower highs and lower lows structure. Recently it has started changing its structure by making higher highs and higher lows, and also it broke its trendline.
At the current juncture, it has sustained above 200 DEMA (day exponential moving average) high low band. What is more interesting is that buying volume is picking up from lower levels. In the previous trading session, we witnessed some selling pressure with almost negligible volume.
On the indicator front, daily DMI (directional movement index) has given a bullish cross along with daily MACD (moving average convergence divergence) displays flip flop structure above the zero line hinting upside in the counter. One can buy in the range of Rs 1,045-1,060, with the target at around Rs 1,155 and stop-loss at Rs 999.
Glenmark Pharma: Buy | LTP: Rs 437 | Stop-Loss: Rs 415 | Target: Rs 475 | Return: 9 percent
Glenmark Pharma has observed a steep fall of 49 percent between July 2021 and June 2022. Since then the stock has been making higher highs and higher lows structure thus confirming its uptrend.
For the last 2 months, the said counter has maintained its price above 200 DEMA OHLC (open, high, low, close) band which is an indication of more strength coming in.
On the indicator front, weekly RSI (relative strength index) has taken support near 50 levels and rebounded from there along with Weekly MACD approaching the zero line denoting further upside in Glenmark.
One can buy at CMP with upside expected till Rs 475 with a stop-loss of Rs 415.
Advanced Enzyme Technologies: Buy | LTP: Rs 304.55 | Stop-Loss: Rs 275 | Target: Rs 355 | Return: 16 percent
After registering its top at Rs 501 in the month of May 2021, the said counter corrected almost 48 percent. For the last 8 months, Advanced Enzyme has changed its price structure by not making further lows and maintaining the levels of Rs 260. In the current December month, the said counter has maintained its price above 200 DEMA OHLC band which is an indication of an early reversal.
On the indicator front, daily MACD displays bullish divergence on the histogram and its respective lines. Daily DMI’s are positive and advancing its structure further adding strength to the counter.
One can add/buy at current levels in a small tranche and add another between Rs 290-295 with an upside target of Rs 355 and a stop -loss of Rs 275 on a closing basis.
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.
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