Indian market began this week on a positive note with Nifty index surpassing 18,000 for the first time as PSU banks, auto and metal counters witnessed sharp upside moves.
On the derivatives front, a tug of war was witnessed among Call writers and Put writers at 18,000 strike and 17,800 strike, respectively. From a technical point of view, both the indices, i:e Nifty and Bank Nifty, can be seen trading in a rising channel with formation of higher bottom pattern.
For the upcoming sessions, markets are expected to trade with a positive bias. On the higher side, now any decisive move beyond 18,050 levels could add further buying momentum into index. As far as Bank Nifty is concerned, now 38,000-37,500 zone would act as a strong support for the index.
Here are three technical buy calls for next 2-3 weeks:
Siemens: Buy | LTP: Rs 2,265.85 | Stop Loss: Rs 2,120 | Target: Rs 2,475 | Return: 9.2 percent
The stock made its 52-week high of Rs 2,318 in month of September and since then prices can be seen trading under pressure as stock tested its 100-day exponential moving average on daily interval and took support around Rs 2,075 levels in recent past.
At current juncture, however, once again the stock has managed to surpass above its 50day exponential moving average on daily time frame with a breakout above an Inverted Head and Shoulder pattern on broader charts.
On short term charts, the stock has also given a breakout above rectangle pattern which suggests for next up leg into the prices. Traders can accumulate the stock in range of Rs 2,250-2,265 levels for the upside target of Rs 2,475 levels with stop loss below Rs 2,120.
Petronet LNG: Buy | LTP: Rs 236.20 | Stop Loss: Rs 215 | Target: Rs 256 | Return: 8.4 percent
On broader charts, the stock made a double bottom pattern around Rs 213 levels and bounced back sharply to regain the momentum above Rs 230 levels. At current juncture, the stock has given breakout above its 200-day exponential moving average on daily interval.
Alongside breakout above falling wedge pattern can be observed on weekly charts. The price volume action on short term charts suggests for next upside in a stock.
Traders can accumulate the stock in range of Rs 230-235 levels for the upside target of Rs 256 levels with stop loss below Rs 215.
Motherson Sumi Systems: Buy | LTP: Rs 245.20 | Stop Loss: Rs 220 | Target: Rs 275 | Return: 12.2 percent
In the recent past, the stock took support at its 200-day exponential moving average on daily time frame and recovered sharply thereon. Stock can be seen trading in a rising channel formation with higher bottom pattern.
At current juncture, the stock has given a breakout above the multi-week highs after forming rounding bottom pattern on weekly charts. The breakout is observed with marginally higher volumes, which suggests a long build up into the prices.
Traders can accumulate the stock in range of Rs 240-245 levels for the upside target of Rs 275 levels with stop loss below Rs 220.
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