The Nifty bulls managed to hold the support of 17,700 after the gap-down opening and the index recovered fully at the end of the session on April 26. The momentum remained strong. One should keep a buy approach and expect targets of 18,000-18,200 in the near term.
The monthly expiry indicates resistance at 18,000 where the highest open interest is built up on the Call side.
Bulls have kept their hold on the Bank Nifty as the index ended in the green, recovering from the morning losses. In the short term, the trend remains bullish with the new range for traders being 42,500-43,000, where writers have significant build-up.
On the lower end, a fall below 42,500 on Bank Nifty may trigger panic in the banking space; whereas on the higher end, a decisive rise above 43,000 may induce further rally.
Here are three buy calls for next 2-3 weeks:
GNFC: Buy | LTP: Rs 587 | Stop-Loss: Rs 550 | Target: Rs 625-640 | Return: 9 percent
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has given a strong breakout on the daily chart with a sharp surge in volumes. The stock has broken out from a falling channel pattern which was in force for the last 2-3 months.
The positive divergence was clearly visible on the daily chart which confirms the buy signal. The lower end support is at Rs 550 and the potential upside targets are Rs 625-640.
Berger Paints: Buy | LTP: Rs 605 | Stop-Loss: Rs 575 | Target: Rs 625-640 | Return: 6 percent
Berger Paints has given a breakout from an Inverse Head and Shoulder pattern with a rise in volume. The momentum indicator RSI has also given a positive crossover which confirms the buy signal.
The MACD indicator has given a zero line crossover which confirms a double buy signal. The lower-end support is at Rs 575 and the potential upside targets are Rs 625-640.
Power Grid Corporation of India: Buy | LTP: Rs 238 | Stop-Loss: Rs 232 | Target: Rs 248-253 | Return: 6 percent
The stock has moved up after consolidation on the daily timeframe. Besides, the stock has sustained above the critical moving average.
The momentum indicator is in bullish crossover and rising. Over the short term, the stock is likely to remain positive. On the higher end, the stock may move up towards Rs 250, and support on the lower end is pegged at Rs 232.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
