Vikas Jain
Nifty has been witnessing a tug of war testing its band of short and long-term averages with swing trades over the last seven trading sessions.
Either side breakout would give a follow-up of another 200-300 points with a higher target of 11,050-11,100 levels.
Earlier resistance of 10,550 levels would interchange its role as a support.
On the derivates side, we have seen put writing at 10,450-10,500 strikes. We remain positive till 10,480-10,550 level is not breached on the downside.
Bank Nifty index has key support in the range of 20,800-21,000 levels and the positive views will be negated if it breaches 20,400 on the downside.
The potential targets on the higher side are placed at 23,200 levels over the next few weeks.
The first-quarter results declared so far are positive with strong price action coming in Wipro, Infosys and Bajaj Consumer after the results and we continue to believe there will be more earnings reaction after the management commentary in individual stocks and sectors.
Here are three buy calls for the next 3-4 weeks:
The stock has closed near its long-term support zone and has witnessed positive pullbacks from the current levels on various counts.
RSI has also turned positive on the weekly charts which indicate limited weakness in the stock and it could give an upward breakout.
This could bring the stock to test the long-term moving average as the potential target over the next few months.
The stock formed multiple bottoms in the range of Rs 400-410 on daily charts and is on the verge of giving a breakout above its long-term average.
Daily RSI is trading above 50 levels, indicating a bullish setup for the stock.
It closed at a 4-week high with strong volumes and has been trading above the short-term average line for the last couple of weeks.
Voltas | Buy | LTP: Rs 551 | Target price: Rs 615 | Stop loss: Rs 522 | Upside: 12%
The stock formed a double bottom at sub-Rs 530 levels with strong volumes and has good support at the 50-day average placed at Rs 525.
The stock has completed its price and time-wise consolidation after a sharp up-move. Now we expect a fresh move to cross the earlier recent high of Rs 586.
Its Relative Strength Index has crossed upwards from its lower band of averages and we expect the stock to outperform from the current levels.
(The author is Senior Research Analyst at Reliance Securities)
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