The Nifty index, after a steep correction in the past couple of months, has shown respite in the start of the July series. The index is trading in an uptrend on the short term time frame with higher high and higher low formations intact.
The lower end support stands at 15,400 zone and immediate resistance is placed at 16,200. The undertone remains bullish as long as the mentioned support is held and if it sustains above 16,200 then it can see further extension towards 16,500-16,800 levels.
The index is trading in a parallel uptrend and the RSI (relative strength index) indicator has shown strong reversal from the oversold category. The index is trading above its 20 days moving average which will act as good support on the downside.
Here are three buy calls for next 2-3 weeks:
NOCIL: Buy | LTP: Rs 257.45 | Stop-Loss: Rs 245 | Target: Rs 280-288 | Return: 9-12 percent
The stock is trading in a strong uptrend with higher low and higher high formation intact on the daily chart. The momentum oscillators are in the buy zone confirming the internal strength of the stock.
The stock is trading above its short term moving averages indicating the strong momentum in the past few days.
Bata India: Buy | LTP: Rs 1,783.8 | Stop-Loss: Rs 1,720 | Target: Rs 1,860-1,890 | Return: 4-6 percent
The stock has given a breakout on the daily chart with rising volumes indicating strong momentum in the near term. The stock has surpassed its previous 2 weeks range and has closed on a strong note.
The stock on the daily chart has formed a positive divergence which acts as a trend reversal indicator in the short term time frame.
State Bank of India: Buy | LTP: Rs 480 | Stop-Loss: Rs 460 | Target: Rs 500-512 | Return: 4-7 percent
The stock is on the verge of a breakout from a symmetrical triangle pattern on the daily chart with good base formation on the lower end. The stock has surpassed its previous swing high with higher high and higher low formations intact.
The momentum is likely to continue on the upside with the oscillators trading in a strong buy zone.
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