Nifty turned volatile and was seen trading in the range of 11,350 to 11,550 in September 1 session with some stock-specific action.
On the derivatives front, call writers added hefty open interest at 11,500 and 11,600 strikes which should act as strong hurdles for Nifty and cap any sharp gains.
A decisive move above 11,600 in the coming sessions will once again bring back the bullish momentum into the markets.
On the technical front, the structure still seems to be in favour of bulls as Bank Nifty is trying to struggle with its 200-days exponential moving average on daily charts.
Here are three buy calls for the next 3-4 weeks:
AIA Engineering | Buy | LTP: Rs 1,826 | Target price: Rs 2,130 | Stop loss: Rs 1,600 | Upside: 17%
The stock has been consistently maintaining its uptrend and can be seen trading in a rising channel on broader charts.
This week, the stock has given a fresh breakout after a prolonged consolidation of nearly four months within the range of Rs 1,600 to Rs 1,800.
Additionally, the stock has also formed a rectangle pattern on daily charts and has given breakout above the same with marginally higher volumes which suggests more upside in the prices.
Traders can accumulate the stock in the range of Rs 1,800-1,830 for the upside target of Rs 2,130.
Asian Granito India | Buy | LTP: Rs 273 | Target price: Rs 307 | Stop loss: 232 | Upside: 12.5%
After testing the level of Rs 265 in the recent past, the stock retraced towards Rs 210 and took support at its 50-days exponential moving average on the daily interval.
Since then, prices were seen trading in a rising channel with the formation of higher high.
On the broader charts, the stock has formed a rounding bottom pattern and given breakout above its resistance of Rs 265 with additionally higher volumes which suggest the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 260-265 for the upside target of Rs 307.
Godrej Properties | Buy | LTP: Rs 934 | Target price: Rs 1,032 | Stop loss: Rs 850 | Upside: 10.5%
For the last eight weeks, the stock has been consolidating in the range of Rs 830 to Rs 930 with prices holding well above the short and long-term moving averages on daily and weekly intervals.
At the current juncture, the stock has given a consolidation breakout with positive divergences on the secondary oscillators along with a rise in price and volume.
On the daily charts, the stock has also managed to give breakout above its key resistance level of Rs 930 which suggests that bullish momentum may carry on in the upcoming sessions as well.
Traders can accumulate the stock in the range of Rs 920-930 levels for the upside target of Rs 1,032.
(The author is Senior Technical Analyst at SMC Global Securities)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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