Shitij Gandhi, Senior Technical Analyst, SMC Global Securities
After a heavy sell-off witnessed in the past two sessions, the Indian markets recovered sharply from its lows and snapped the two-day losing streak, as the Nifty indices reclaimed a move above 16,750 levels. However, the markets remained choppy as a tug-of-war between the bulls and the bears kept the the situation volatile.
From the derivatives front, Put writers added marginal open interest at 17,500 strike, while Call writers are seen shifting at higher bands.
From the technical front, markets are expected to remain volatile and likely to trade in a broader range of 16,500-17,000. At the current juncture, the Nifty is still holding above its 200-day exponential moving average which is placed around 16,300 levels on daily charts.
One can expect further downside in prices only if the Nifty manages to breach its long-term moving average.
Here are three buy calls for next 2-3 weeks:
HCL Technologies: Buy | LTP: Rs 1,205 | Stop-Loss: Rs 1,140 | Target: Rs 1,310 | Return: 9 percent
In the recent past, the stock took support at its 200-day exponential moving average and bounced sharply above its short-term moving average to reclaim a move above the Rs 1,150 levels.
From the past two weeks, prices can be seen consolidating in a range of Rs 1,135-1,190. The stock has managed to give breakout above the neckline of Inverted Head and Shoulder pattern visible on daily charts.
Alongside, it has also given closing above its crucial hurdle level of Rs 1,200. Traders can accumulate the stock in a range of Rs 1,200-Rs 1,205 for an upside target of Rs 1,310 with a stop loss below Rs 1,140.
Wipro: Buy | LTP: Rs 690.80 | Stop-Loss: Rs 635 | Target: Rs 761 | Return: 10 percent
Consolidation can be seen in prices in a range of Rs 620-675 from the last two months with prices well maintained above its long-term moving average on the daily and weekly charts.
At current juncture, the stock has given a fresh breakout above key resistance level of Rs 675 after a prolong consolidation phase.
The stock has also formed a symmetrical triangle pattern on short-term charts and managed to give breakout above the same. Traders can accumulate the stock in the range of Rs 685-690 for the upside target of Rs 761 levels with a stop-loss below Rs 635.
Asian Paints: Buy | LTP: Rs 3271.35 | Stop-Loss: Rs 3,000 | Target: Rs 3,650 | Return: 12 percent
Stock has tested its 52-week high of Rs 3,505 in September and took a breather thereon to once again dip towards Rs 2,900 levels. However stock managed to take support at its 200-day exponential moving average and bounce back sharply to regain Rs 3,150 levels in short span of time.
At current juncture, stock can be seen trading in broader range of Rs 3,050-3,200 from past two months. This week stock has managed to surpass above its key hurdle level of Rs 3,250.
The positive divergences on secondary oscillators suggests for next upswing into the prices after a prolonged consolidation phase.
Traders can accumulate the stock in a range of Rs 3,250-3,270 for the upside target of Rs 3,650 levels with a stop-loss below Rs 3,000.
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