In the last five out of 10 trading sessions, Nifty50 opened with a gap on either side of the direction which indicates volatility on Indian indices. In this final week of the April month expiry every alternate day market changes its direction without any specific bias.
On the daily interval, prices are trading within the rising channel pattern and on April 26 prices faced strong resistance near the upper band of the rising channel pattern and on the immediate next day April 27 prices slipped to one percent confirming the resistance of the pattern.
The pries closed below its 21, 50 & 100 days exponential moving averages (EMA) on the daily time frame and the oscillator RSI (relative strength index - 14) has drifted below 50 levels and also facing a strong resistance of a trend line near 70 levels.
The immediate support for the Nifty is placed near its 50 weeks EMA which is placed at 16,660 levels and the upper band of the index is capped at 17,350 levels. If the index is closed above the said levels then the gate for the prices is open till 17,550 levels.
The Bank Nifty has formed a Bearish Island Reversal pattern on the daily chart and the gap created on April 18 was felt unfilled and is acting as near-term resistance.
The immediate support for the Bank Nifty is placed near 35,000 levels and the upper band of the index is capped at 37,500 levels. If the index is closed above the said levels then the gate for the prices is open till 38,200 levels.
Here are two buy calls for next 2-3 weeks:
Tata Consumer Products: Buy | LTP: Rs 798.60 | Stop-Loss: Rs 769 | Target: Rs 845 | Return: 6 percent
The prices are trading in a higher high higher bottom formation on the daily chart for the last one and a half month which indicates an uptrend in the medium term.
The counter has given horizontal trend line breakout which was placed at Rs 790 levels on the daily chart and post the breakout prices have completed throwback and are trading above support levels.
In the recent rally, prices went above 21 and 50 day exponential moving averages which indicates prices are sustaining above bullish range shift zones.
Power Grid Corporation of India: Buy | LTP: Rs 229.30 | Stop-Loss: Rs 220 | Target: Rs 245 | Return: 7 percent
After a minor correction, Power Grid has given a flag pattern breakout on the daily chart and prices have closed above the upper band of the pattern.
The prices are trading in a higher high higher bottom formation on the daily chart for last two months which indicates an uptrend in the medium term.
The prices are following 21-day exponential moving average very closely and whenever we find a dip prices take support near 21 DEMA.
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