The Nifty50 has been making higher top higher bottom formation since last three weeks on the weekly charts which shows a positive undertone of the index for the short to medium term. It has sustained above its 20 weeks SMA (simple moving average - 16,570) and trying to move on the higher side.
On the daily charts, the stock is moving in an upward slopping channel pattern since the last 20 days, indicating bullish sentiments of the index.
On the indicator front, the RSI (relative strength index) plotted on the daily charts is sustaining above 60 mark and making higher top higher bottom formation which shows positive momentum for the short term to medium term.
The Nifty has immediate resistance placed at 16,793, followed by 17,000 levels. The downside support for the index is placed at 16,360, 16,000, followed by 15,785 levels.
We feel that the index is in positive mode and moving towards 16,793 followed by 17,000 marks in coming days. The positive view will be negated if it sustains below 16,360 levels.
Here are three buy calls for next 2-3 weeks:
Bharat Electronics: Buy | LTP: Rs 268.7 | Stop-Loss: Rs 235 | Target: Rs 318 | Return: 18 percent
BEL has maintained its higher top higher bottom formation on all the time frames like daily, weekly & monthly since June 2020. The stock has made a fresh life time high at Rs 267 and sustained at higher levels.
On the weekly charts, the stock has been taking support at 20 weeks SMA with minor whipsaw since October 2020. The stock has formed CIP formation (Change in Polarity) at Rs 220 levels and bounced back.
On the indicator front, the RSI is confirming its upward move by sustaining above 60 levels on all the time frames like daily, weekly and monthly which shows strong positive momentum for the medium to long term.
We expect the stock to move higher towards Rs 293 and if it managed to cross above Rs 293 then eventually it will move towards Rs 318 levels.
One should maintain a strict stop-loss of Rs 235 on daily closing basis for this trade.
State Bank of India: Buy | LTP: Rs 512 | Stop-Loss: Rs 474 | Target: Rs 624 | Return: 22 percent
SBI has taken a strong support at 200 days SMA and bounced back sharply. The stock is currently sustaining at 3 months high with the formation of higher top higher bottom on all the time frame like daily, weekly as well as monthly charts. We witnessed strong volume back up at every up move of the stock which shows bullish strength.
On the indicator front, the RSI plotted on all the time frames like daily, weekly and monthly has been sustaining above the 58 mark with a higher top higher bottom pattern, indicating strong bullish momentum in the prices.
Going ahead, we expect the prices to move at higher levels towards Rs 549 post which we might see a move towards Rs 624 levels. We recommend a stop-loss of Rs 474 on daily closing basis.
Larsen & Toubro: Buy | LTP: Rs 1,765 | Stop-Loss: Rs 1,630 | Target: Rs 2,078 | Return: 18 percent
L&T has corrected around 30 percent from its life time high which was made at Rs 2,078 in January 2022. After making a low at Rs 1,456 the stock is forming higher top higher bottom formation on all the time frames like daily, weekly & monthly indicating positive undertone of the stock for the short to medium term.
On the weekly charts, the stock has been sustaining above its 20 weeks SMA since last 3 weeks.
The momentum indicator RSI is supporting the price action by moving up and sustaining above 55 mark which shows strong positive momentum.
We expect the stock to move higher towards Rs 1,858 and if it managed to cross above Rs 1,858 then eventually it will move towards Rs 2,078 levels.
One should maintain a strict stop-loss of Rs 1,630 on daily closing basis for this trade.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those 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!
