Shabbir Kayyumi
The overall structure of the market looks bullish as long as Nifty is making higher highs and higher lows formation.
However, it is noticeable that the index has formed a small body bearish candlestick pattern in the weekly timeframe.
RSI is trading around 67-levels and sustaining above its 9-DMA and 50-DMA marks which indicates strength in the current upside momentum.
Once Nifty surpasses the resistance zone of 12,300, it can march upwards to 12,500 as the level is near the rising trend line and upper band of Bollinger Band.
Near-term supports are placed near 12,046 which is the last 3 week’s lowest low.
Remember, the 5 week-DMA is near 12,150 level and a decisive close below it will be considered an early sign of trend reversal.
A sustained move above 12,300 level will push prices higher towards Fibonacci extension mark of 12,400 which can even extend towards 12,500 whereas base supports lie near 12,050.
For the Bank Nifty, as long as the index sustains above 31,800, it can rise higher towards 33,000 -33,500 levels. The trading range for the banking index for the week is 31,300-33,500.
Here are three buy calls for the next 3-4 weeks:
Roto Pumps | Buy | LTP: Rs 149.95 | Target: Rs 172 | Stop loss: Rs 134 | Upside: 15%
The stock has been undergoing consolidation for the longer time frame and is on the verge of resuming its prior trend from the polarity area of support.
The momentum indicator MACD has crossed the signal line, indicating a start of a trend. The RSI, too, is above its key 50-mark, indicating positive momentum on its side.
A pause at the area of polarity suggests a significant rebound is likely.
Karnataka Bank | Buy | LTP: Rs 74.20 | Target: Rs 83 | Stop loss: Rs 66 | Upside: 12%
The stock has witnessed decent erosion from the peak of 120 to the currently bottommed out level of Rs 68.
The appearance of a three back to back bullish candle near the support levels, along with RSI bouncing off oversold region, indicates immediate floor near Rs 66-68 zone.
As of now, it indicated a bullish candle to signify strength and has the potential to carry on the momentum further on the upside.
Indicators and oscillators are looking conducive to the price pattern.
Ashok Leyland | Buy | LTP: Rs 83.65 | Target: Rs 92 | Stop loss: Rs 73 | Upside 10%
The stock has decisively broken out from its downward sloping line and is sustaining above the same.
On the daily and weekly chart, the stock has witnessed a shift of trend to the upward, forming base with congestion.
The weekly strength indicator and the momentum indicator stochastic, both are in the positive territory which supports upside momentum to continue in the near-term.
The stock price is sustaining well above all significant moving average which supports bullish sentiment ahead.
(The author is Head of Technical Research at Narnolia Financial Advisors)
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
