The Nifty has gained 1,050 points in the last 17 trading sessions. At the current juncture on the weekly scale, the index has broken its previous trading range of 16,900-17,400 quite comfortably and closed near the 17,650 mark. It has also reversed from its 5.0 bullish pattern on the weekly scale.
The following two scenarios are possible in the coming weeks:
1) If the Nifty closes above 17,800 on the weekly scale, we may see 18,400 in a couple of weeks. At 18,400, a Bearish shark pattern will emerge on the weekly scale near a 1.13 ratio.
2) If Nifty closes below 17,400 on the weekly scale, we may see 17,000 in a couple of weeks.
Thus, we believe that hedging would be the best weapon in the current market situation.
Since the past four weeks, we saw a 4,150-point acceleration in Bank Nifty and it closed near 41,122. It is just 718 points away from the all-time high of 41,840 registered on September 12, 2022.
Sustainability above 40,500 may take the banking index to a new high in the coming weeks. The view would, however, be negated below a weekly close of 40,000.
Here are three buy calls for the next two-three weeks:
Petronet LNG: Buy | LTP: Rs 202.6 | Stop-Loss: Rs 190 | Target: Rs 230 | Return: 13.5 percent
Petronet corrected 14 percent between July and September 2022. Since then, it is consolidating between Rs 198 and 204 on the hourly scale and has made a solid base near Rs 203.
On October 3, 2022, it completed a bullish BAT pattern near the said range along with the complex structure on daily relative strength index (RSI), which hints towards a possible reversal in the counter.
One can hold and add in the range of Rs 202-204. The upside is seen till Rs 230 with the stop-loss of Rs 190 on a closing basis.
Reliance Industries: Buy | LTP: Rs 2,441.55 | Stop-Loss: Rs 2,360 | Target: Rs 2,600 | Return: 6.5 percent
RIL has been making higher highs and higher lows since September 30, 2022 after a successful reversal from a bullish alternate BAT pattern. The Rs 200 rally which started on September 30, 2022 and continued till October 19, 2022 has been stalled and we are expecting a small pullback to Rs 2,420-2,430, which will be a safe zone for fresh longs for those who didn't catch the Rs 200 rally.
On the indicator front on a daily scale; the 9-day rate of change has turned positive and is placed at 2.79 levels, hinting at an upside. Expected upside levels are Rs 2,600 and credible support is placed at Rs 2,360.
HCL Technologies: Buy | LTP: Rs 1,026.5 | Stop-Loss: Rs 960 | Target: Rs 1,150 | Return: 12 percent
The free fall from mid-January 2022 to July 2022 resulted in a 34 percent decline in price. On a weekly scale, the counter has formed a bullish BAT pattern with a potential reversal zone of Rs 920-940 along with double- bottom near mentioned potential reversal zone, which is adding more confirmation for early reversal in the counter.
Recently, the counter gave a clean breakout from the trading range of Rs 860-950 and ended near Rs 1,027 on a weekly closing basis, which shows strength in the counter.
The weekly RSI has formed an impulsive structure near the oversold zone along with the MACD-made bullish cross (weekly scale), which further confirms the upside in the counter.
One can buy in small tranches at current levels and buy another tranche at around Rs 985-990 levels (if tested). The upside is expected till Rs 1,150 and support is placed around Rs 960.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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