The Nifty respected its 200-DMA (days moving average) beautifully and it is ready to cross the key hurdle of 50-DMA at 17,500 which may lead to a fresh bullish momentum towards 17,800-18,000 levels. On the downside, a 20-DMA of 17,225 will act as a strong support level.
Bank Nifty is outperforming and trading above the key hurdle of 40,000 level. It is likely to head towards a fresh all-time high of 42,000, whereas 41,000 is an immediate hurdle. On the downside, 39,500 has become a near-term base.
India VIX failed to hold above 200-DMA which gave confidence to bulls whereas the market will have the support of short covering as short positions of FIIs in the index future are still in oversold territory.
Global markets are also showing some signs of relief, however, market will continue to have an eye on the dollar index, bond yields, and US macro data. Q2 numbers of Indian Inc will continue to lead stock-specific movement in the market.
Here are three buy calls for next 2-3 weeks:
Everest Industries: Buy | LTP: Rs 884.35 | Stop-Loss: Rs 820 | Target: Rs 1,014 | Return: 14 percent
The counter is in the classical move, as it has witnessed a breakout of long rounding bottom formation on the daily chart, and then it retested its previous breakout at Rs 822 levels after hitting a fresh all-time high at Rs 903.
Now it is starting the next leg of a rally and forming a bullish flag formation.
The structure of the counter is very lucrative as it trades above its all-important moving averages. An investor can take a position at the current level of Rs 884.35 with a stop-loss of Rs 820 for the target of Rs 950-1,014 in the near term.
MACD (moving average convergence divergence) is supporting the current strength whereas the momentum indicator RSI (relative strength index) is also positively poised.
Tube Investments of India: Buy | LTP: Rs 2,760.75 | Stop-Loss: Rs 2,615 | Target: Rs 3,040 | Return: 10 percent
The counter is coming out from a symmetrical triangle pattern formation on the daily chart, while weekly basis it has witnessed a breakout of bullish flag formation with huge volume. The overall structure is very lucrative as it trades above its all-important moving averages.
On the upside, Rs 2,850 is an immediate resistance area; above this, we can expect a run-up towards Rs 3,040 levels in the near term. On the downside, Rs 2,615 is major support for any correction.
The momentum indicator RSI (relative strength index) is also positively poised whereas MACD (Moving average convergence divergence) is supporting the current strength.
Apar Industries: Buy | LTP: Rs 1,500.75 | Stop-Loss: Rs 1,350 | Target: Rs 1,774 | Return: 18 percent
The counter is in classical bullish momentum and forming higher highs & higher lows formation on the longer timeframe. The previous swing high around Rs 1,540 is an immediate level; above this, we can expect Rs 1,774 level in the near term.
On the downside, the previous breakout level of Rs 1,400 is a critical support level while Rs 1,330 is a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
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