The Nifty50 index opened On October 27 with a small gap but was unable to sustain at high levels and witnessed profit booking. It finally closed the day at 18,211 with a loss of third of a percent and formed a bearish candle on the daily chart.
The index has formed a strong hurdle zone near 18,325 levels. If it trades below this level, then there could be some more profit booking but if it manages to cross the said levels decisively, the next move towards 18,500-18,600 zone can't be ruled out. So we would suggest fresh long only above 18,325 zone.
On the other hand, immediate support is near 18,150-18,000 levels. Also, long traders can trail their stop loss below the 18,000-mark.
Here are three buy calls for next 2-3 weeks:
Gujarat Alkalies and Chemicals: Buy | LTP: Rs 788.45 | Stop Loss: Below Rs 700 | Target: Rs 900-1,000 | Return: 14-27 percent
The stock is trading in strong uptrend & recently it has showed some correction from Rs 850 odd levels to Rs 650 zone which considered to be a descent correction and again stock is bouncing from good support zone which is very usual practice of any strong stock.
Good volume activity also witnessed at the time of pull back which shows buying interest is immense & if Rs 700 levels are held on closing basis we may see more extension in current pull back towards Rs 1,000 zone.
Grindwell Norton: Buy | LTP: Rs 1,543.15 | Stop Loss: Below Rs 1,400 | Target: Rs 1,700-1,800 | Return: 10-17 percent
The stock is trading in typically retest structure and we have been witnessed same structure previously also as seen on charts. Recently the stock has given a breakout and now prices are hovering near previous breakout zone which considered to be strong demand zone for stock.
Also the stock is well trading above its rising trend line which also shows trend is up. If stock managed to sustain above Rs 1,400 zone on closing basis one can expect a northward move towards Rs 1,800 zone in near term.
Jindal Stainless (Hisar): Buy | LTP: Rs 339.60 | Stop Loss: Below Rs 310 | Target: Rs 400 | Return: 18 percent
The stock recently crossed its previous swing high with good volume & previously it has showed a retest structure. The stock is trading in strong uptrend as we witnessed higher high higher low structure on charts.
Both momentum indicator RSI & MACD are ranging in positive territory as RSI is trading above 65 & MACD hovering above its base line.
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