Nifty has formed a smaller degree rounding bottom formation on the daily chart after retesting its 21-day exponential moving average on the daily timeframe chart.
The index, on the intraday chart, has given a horizontal trendline breakout and has sustained above the same.
Momentum oscillator RSI (14) is hovering near 55–65 level with positive crossover on the daily interval. The overall structure on the indicator suggests RSI may soon revisit the 70-level which is its prior resistance zone.
Most of the Asian equity benchmarks traded in the green on March 10 as the market sentiment got boosted with the bond yields holding back ahead of auctions in the coming days and greater momentum in the vaccination drive.
India VIX for the last three trading sessions has been forming red candles on the daily chart and on March 10, the volatility index drifted almost 8 percent to close below 21-level.
As the India VIX slips lower, there will be a cooling-off in the market volatility with a clearer trend.
The base support for Nifty50 has shifted above 14,850–14,900 level. Any dip towards those levels can be used as a 'buy on dips' opportunity.
The current rally looks quite convincing and the index may touch 15,400 or maybe a new lifetime high in the coming trading sessions.
Here are three buy calls for the next 2-3 weeks:
HPCL | LTP: Rs 241 | Target price: Rs 258 | Stop loss: Rs 230 | Upside: 7%
HPCL, after a prolonged consolidation, has witnessed a rectangle pattern breakout on the weekly timeframe chart and is currently trading above its trendline support.
A recent minor retracement has found support near the 50-day exponential moving average and currently, the price is trading above its 50 and 100-day EMA which is positive for the counter in the near-term.
Stochastic and MACD oscillators are showing strength in the stock. Besides, most oil and gas stocks are showing strength in the smaller timeframe charts.
When we observe volume activity, there has been an above-average volume setup for the past few days.
Momentum oscillator RSI (14) is tangled in a bullish range shift of 50 – 70 levels with positive crossover on a broader timeframe.
Fortis Healthcare | LTP: Rs 179.70 | Target price: Rs 192.50 | Stop loss: Rs 172 | Upside: 7%
The stock has witnessed a rectangle pattern breakout on the daily timeframe and is currently trading above the trendline support.
It is trading in higher high higher low formation on the weekly scale which is positive for the counter in the short to medium-term.
The counter is trading above its 21, 50 and 100-day exponential moving averages on the weekly as well as daily timeframe, which is positive for the prices.
The stock has found support near 38.20 percent Fibonacci retracement which is placed at Rs 160 level from its previous intermediate low on the weekly interval.
HCL Technologies | LTP: Rs 988.50 | Target price: Rs 1,050 | Stop loss: Rs 955 | Upside: 6%
This stock had been consolidating for the last one month in the range of Rs 910 – 970. On March 10, HCL Tech witnessed a consolidation breakout which is placed above Rs 980.
The counter is trading in a higher high higher low formation, trading above its upward rising trendline support on the weekly chart.
The stock is trading above its 21, 50 and 100-day exponential moving averages on the weekly as well as daily timeframe, which is positive for the prices in the near-term.
Momentum oscillator RSI (14) has given horizontal trendline breakout above 55 level and is currently trading above the 60 level.
(The author is a technical analyst at Bonanza Portfolio)
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