In the last couple of trading sessions, we have witnessed profit-booking in Nifty near lifetime high levels.
It moved below 15,700 but sustained above the 20-day simple moving average (SMA) which indicates the primary bullish trend is intact for the short to medium term.
On the weekly timeframe, Nifty has been forming an indecisive candle pattern for the last three weeks.
This shows fatigue in market sentiment at higher levels which can cause some correction if the Nifty breaches the 15,430 level.
The index remains above the 50, 100 and 200-say simple moving averages.
The RSI plotted on the daily timeframe can be seen turning down from the overbought zone which confirms that the bullish momentum has weakened and we may see some profit-booking in the market at least for the short term.
The key support levels for the short term are 15,430 and 15,145. The key resistance level is 15,901 and if the index sustains above this level, we might see it head higher towards 15,986 and eventually 16,687.
Here are three buy calls for the next 3-4 weeks:
Titan Company | LTP: Rs 1,780.60 | Target price: Rs 2,103 | Stop loss: Rs 1,674 | Upside: 18%
This stock has been forming a bullish pattern of higher top higher bottom on the monthly timeframes since June 2020 which shows a strong positive undertone of the stock for the longer term.
A couple of weeks back, the stock gave a consolidation breakout with volume confirmation.
On the daily charts, the stock has been continuously sustaining above its 20-day SMA. It is trading near an all-time high level which indicates the strong positive nature of the stock for the short to medium term as well.
The ADX plotted on the medium-term can be seen moving higher, indicating strong momentum of the current up move.
The immediate resistance is placed at Rs 1,952, followed by Rs 2,103. The key support levels are Rs 1,674 and Rs 1,541.
One can buy the stock at the current level for the targets of Rs 1,952, followed by Rs 2,103.
Bharat Electronics (BEL) | LTP: Rs 171.05 | Target price: Rs 222 | Stop loss: Rs 140 | Upside: 30%
On the monthly charts, this stock has maintained its strong bullish mode with the formation of a higher top higher bottom formation.
On the weekly charts, it has taken support at 20-week SMA and also formed an engulfing bullish candle which shows the strong positive sentiment of the stock.
In the previous trading session, the stock has given a consolidation breakout with volume confirmation and also made a 52-week high on the daily chart which indicates the stock is now ready for the next up move.
RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher.
Resistance is placed at Rs 193, followed by Rs 222. The key levels to watch out for on the downside are Rs 140, followed by Rs 115.
One can buy the stock at the current levels for the target of Rs 193, followed by Rs 222.
This stock has been forming a higher top higher bottom pattern on monthly, weekly and daily charts which show a strong positive undertone of the stock for the medium to long term.
On the weekly timeframe, the stock has given a multiyear breakout and also sustained above its 200-week SMA which confirms the positive sentiment of the stock for the medium to long term.
On the daily charts, it is moving upward with Bollinger band squeeze breakout and also sustaining near 52-week high which indicates positive volatility breakout.
RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher.
Immediate resistance is placed at Rs 2,719, followed by Rs 3,227. The key support levels are Rs 2,250 and Rs 1,959.
One can buy the stock at the current levels with a target of Rs 2,719, followed by Rs 3,227.
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