Through the last 16 sessions, the Nifty has been trading in the range of 17,200 - 18,000 and formed a Bearish Shark pattern with a reversal zone of 17,900-18,000.
Based on the movement of the index, two scenarios are possible in the coming weeks. One, if the Nifty closes above 18,000 on a weekly ,scale then we may see 18,500 in a couple of weeks' time which will negate our bearish shark pattern. Two, if the Nifty closes below 17,500 on a weekly scale, then we may see 17,000 in couple of weeks' time.
Thus, we believe that hedging would be the best weapon to use in the current market situation.
Since the last couple of weeks, we saw 2,500 points have been pumped in Bank Nifty and it closed near 40,400 mark. At current juncture, we are just 1,400 points away from the all-time high of 41,830 approximately, which was registered on October 25, 2021. Sustainability above 39,800 might take Bank Nifty to all-time high in coming weeks.
The above view would be negated below the 39,000 mark on a weekly closing basis.
Here are three buy calls for next 2-3 weeks:
Pfizer: Buy | LTP: Rs 4,324 | Stop-Loss: Rs 4,100 | Target: Rs 4,800 | Return: 11 percent
Since September 2021, the counter observed free fall from Rs 6,175 till Rs 4,070 and it has stabilized near its historical support of Rs 4,100. From candlesticks pattern perspective, during August 2022 month, the counter has displayed a pair of Dojis followed by bullish Engulfing pattern along with volume steadily increasing which is hinting upside.
From indicator perspective, weekly RSI (relative strength index) has a complex structure near the oversold zone which further confirms upside in counter.
One can buy in small tranches at current levels and buy another tranche at around Rs 4,250 levels. The upside target is expected till Rs 4,800 and with a stop-loss of Rs 4,100.
Gujarat Gas: Buy | LTP: Rs 507.2 | Stop-Loss: Rs 475 | Target: Rs 575 | Return: 13 percent
Gujarat Gas has corrected almost 49 percent from its peak of Rs 780 which was registered on August 2, 2021. On a weekly scale, it has taken support near Rs 420-430 levels.
Recently on a weekly scale, the stock confirmed a bullish Inverted Hammer candlestick pattern followed by a bullish Piercing pattern exactly at the mentioned support levels and that is adding more confirmation of further upside in the counter.
In addition to the above discussed technical reasoning, weekly RSI has displayed impulsive structure near the oversold zone which is adding more strength in the said counter. Thus we advise traders to buy the stock for an upside target of Rs 575 with a stop-loss of Rs 475.
ONGC: Buy | LTP: Rs 134 | Stop-Loss: Rs 120 | Target: Rs 150 | Return: 12 percent
ONGC has been making lower highs and lower lows since March 2022 which resulted in 38 percent correction. At current juncture, it has made a nice base near its historical support of Rs 130 levels as some buying resumed during the last couple of months along with volume activity increasing.
From indicator perspective, daily RSI (relative strength index) has bounced back after taking support near 40 levels which further confirms upside in counter. One can buy at current levels for an upside target expected till Rs 150 and with a stop-loss of Rs 120.
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