Nifty has fallen in value for the last five days in a row as bears have been controlling the market. The global equity sell-off was triggered by the US banking crisis, which pushed the benchmark Nifty below its 200-day moving average (17,447). A move below the 200DMA is considered long-term bearish.
However, on the lower end, the index has fallen towards the lower band of the falling channel, which may lead to a small bounce in the near term. On the higher end, recovery towards 17,200 looks possible where a significant amount of Call writing is visible.
A decisive move above 17,200 may induce a further upward move towards 17,400–17,460. On the other hand, a decisive fall below 16,950 may trigger panic in the market and send the Nifty towards 16,750 and lower.
Bank Nifty has sustained below the critical short-term moving averages on the daily chart. The momentum indicator is in bearish crossover. A fall below 39,000 may trigger further corrections towards 38,800-38,500. On the higher end, resistance is visible at 39,500.
Here are three buy calls for next 2-3 weeks:
National Aluminium Company: Buy | LTP: Rs 83.70 | Stop-Loss: Rs 81.40 | Target: Rs 90 | Return: 7.5 percent
The stock has given a consolidation breakout on the daily chart, suggesting a rise in optimism. Besides, the rally was backed by a rise in volume. The stock has sustained above the critical moving averages on the daily chart.
The momentum indicator is in bullish crossover. Over the short term, the stock is likely to move towards Rs 90. On the lower end, support is visible at Rs 81.40.
HCL Technologies: Sell | LTP: Rs 1,080 | Stop-Loss: Rs 1,100 | Target: Rs 1,040 | Return: 3.7 percent
The stock has given a rising trendline breakdown on the daily timeframe, suggesting a rise in pessimism. Besides, the stock has sustained below the critical short-term moving averages on the daily chart.
The momentum indicator is in bearish crossover. A sustained trade fall below Rs 1,080 may trigger further corrections towards Rs 1,040. On the higher end, resistance is visible at Rs 1,100.
BPCL: Buy | LTP: Rs 330 | Stop-Loss: Rs 322 | Target: Rs 345 | Return: 4.5 percent
The stock has moved above the consolidation zone following a falling trend line breakout, suggesting a rise in optimism. Besides, the index has sustained above the 14-DMA (Rs 322.5) on the daily chart.
Now a decisive move above the 50DMA (Rs 334) may induce a rally towards the higher levels. On the lower end, Rs 322 is likely to act as crucial support. On the higher end, the stock is likely to move towards Rs 345.
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