Indian market continued its winning streak for the fifth consecutive session on December 29 and ended at record high led by gains in financial and IT stocks.
Investor sentiment remained upbeat amid positive global cues like stimulus and the Brexit deal.
On the derivatives front, 14,000 levels would be a key hurdle for Nifty in the upcoming sessions as Call writers are holding maximum open interest at 14,000 call strike.
On the downside, 13,800 would act as major support. On the technical front, secondary oscillators suggest that the market is likely to witness intraday volatility as traders will look to book profits at higher levels as we are approaching year-end and monthly expiry of the December series.
So far, Nifty has moved more than 7 percent this month while Bank Nifty has surged nearly 5.75 percent.
We expect that bulls are likely to remain on the front foot in the upcoming sessions as well and any dip in the prices should be used to create fresh longs.
Here are three buy calls for the next 2-3 weeks:
Sterlite Technologies | LTP: Rs 177.80 | Target price: Rs 205 | Stop loss: Rs 159 | Upside: 15%
The stock had been consistently moving in a broader range of Rs 140-175 for nearly four months.
This week, it has given a fresh breakout above the key resistance level of Rs 175 after a prolonged consolidation on charts.
Additionally, the stock has also managed to close above its 200-day exponential moving average on the weekly charts which is placed at Rs 165 levels.
Positive divergences on secondary oscillators with rising volumes also support the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 175-179.
Dr. Lal PathLabs | LTP: Rs 2,310 | Target price: Rs 2,600 | Stop loss: Rs 2,140 | Upside: 13%
After testing Rs 2,394 levels in October 2020, the stock has been consistently moving in a broader range of Rs 2,100 to Rs 2,400 for the last two months.
This week, the stock has given a fresh breakout after a prolonged consolidation as prices moved above the key resistance level of Rs 2,330.
On the technical front, the stock has shaped up a rounding bottom pattern on the daily charts after taking support at Rs 2,100 level three times.
The breakout has been observed with rising volumes with rising in price which suggests the next uptrend in the prices.
Traders can accumulate the stock in the range of Rs 2,300-2,315.
Mahanagar Gas | LTP: Rs 1,082 | Target price: Rs 1,168 | Stop loss: Rs 1,000 | Upside: 8%
In the recent past, the stock witnessed a sharp rally from Rs 825 to Rs 1,060 in a short span of time.
However, since then, consolidation kept the stock in the range of Rs 1,000 to Rs 1,080 levels during the last four weeks.
At the current juncture, the stock has formed up a rectangle pattern on the daily charts and is on the verge of a fresh breakout above the same.
The pattern is generally traded as the continuation pattern which suggests the next uptrend in the prices.
Traders can accumulate the stock in the range of Rs 1,060-1,075.
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