Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The Nifty experienced a period of volatility, trading between a range of 18,211 and 11,326 before closing in positive territory on May 10. The next strong resistance level for the Nifty is expected to be in the range of 18,400 to 18,500.
However, the overall trend remains positive, indicating that there is an overall upward bias in the market. Therefore, despite potential resistance levels, the market is still expected to move in an upward direction as long as it sustains above 18,200.
Bank Nifty witnessed a strong recovery by the bulls after a weak start. The support level at 43,000 demonstrated a strong demand zone. Currently, there is immediate resistance at 43,500, and surpassing this level would clear the way for further gains toward 44,000.
Here are three buy calls for next 2-3 weeks:
GAIL India: Buy | LTP: Rs 109 | Stop-Loss: Rs 105 | Target: Rs 120-126 | Return: 16 percent
GAIL has experienced significant buying interest recently. The stock has formed a symmetrical triangle pattern. The momentum indicator RSI (relative strength index) has shown a positive crossover, confirming a buy signal.
The support is observed at Rs 105, and once the stock surpasses the level of Rs 111, it is expected to gain strong momentum towards targets of Rs 120 or Rs 126.
Dreamfolks Services: Buy | LTP: 487.65 | Stop-Loss: Rs 450 | Target: Rs 510-525 | Return: 8 percent
Dreamfolks has recently experienced a breakout on the daily chart, accompanied by a significant increase in trading volumes. The stock found support at its 200-day moving average (DMA) level, which is positioned at Rs 420.
The RSI momentum indicator has also shown a positive crossover, further confirming a buy signal. As a result, a "buy on dip" strategy is recommended for this stock.
Power Grid Corporation of India: Buy | LTP: Rs 247.65 | Stop-Loss: Rs 240 | Target: Rs 260-265 | Return: 7 percent
The stock has given a consolidation breakout on the weekly chart, indicating a shift in its previous sideways movement. Additionally, the stock has been consistently trading above critical moving averages, which suggests a bullish sentiment and reinforces the possibility of further upward movement.
Furthermore, the RSI has displayed a bullish crossover. The short-term trend looks positive with an upside potential of Rs 265, support on the lower end is placed at Rs 240.
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