Shitij Gandhi, Senior Technical Analyst, SMC Global Securities
The Indian markets once again witnessed heavy selling on Tuesday as the Nifty slipped below the 17,000 mark with bears reigning on Dalal Street. Banking, auto and metal counters remained laggard while pharma and FMCG, along with IT, supported markets regain to some extent.
From the derivatives front, Call writers added hefty open interest at 17,200, 17,300 and 17,500 strikes, while Put writers added marginal open interest at 17,000 and 16,800 strikes.
We expect the markets to remain under pressure in the upcoming sessions as well and to tread on a volatile path. The bulls look a bit uncomfortable at the current juncture as the Nifty has managed to close below its 100-day exponential moving average on daily charts.
As far as Bank Nifty is concerned, it has major support at 35,300-35,100 zone, below which further downside into the prices can't be ruled out.
Here are three buy calls for next 2-3 weeks
Max Healthcare Institute: Buy | LTP: Rs 380.20 | Stop Loss: Rs 340 | Target: Rs 422 | Return: 11 percent
After hitting its 52-week high of Rs 402.60 in September, the stock saw profit-booking at higher levels and retraced towards Rs 330 levels. The stock can be seen trading in a consolidation zone since then. In recent past, the stock took support at its 100-day exponential moving average on daily charts and formed a rounding bottom pattern to once again to reclaim a move above Rs 370 levels.
From the technical front, prices have given a breakout above the consolidation zone after nearly eight weeks. The rising volumes along with price action suggests for next up leg into the prices. Traders can accumulate the stock in the range of Rs 370-380 for the upside target of Rs 422 with stop loss below Rs 340.
Dr Lal PathLabs: Buy | LTP: Rs 3,789.45 | Stop Loss: Rs 3,450 | Target: Rs 4,212 | Return: 11 percent
In a recent move, the stock took support at its 200-day exponential moving average on daily charts and bounced back sharply above Rs 3,700 levels after forming a double bottom pattern. At current juncture, the stock has managed to reclaim a move above its short-term moving averages and has given breakout above its multi week highs.
The rising volumes with rise in price suggest a long build-up into the stock which can push prices much higher from current levels. Traders can accumulate the stock in range of Rs 3,760-3,790 for the upside target of Rs 4,212 with stop loss below Rs 3,450.
Tata Consultancy Services: Buy | LTP: Rs 3,529.15 | Stop Loss: Rs 3,330 | Target: Rs 3,840 | Return: 9 percent
The stock tested its 52-week high of Rs 3,989.90 in October and since then seen trading lower on the back of profit-booking. From the last one month, the stock can be seen trading in a broader range of Rs 3,400-3,550.
At the current juncture, the stock has formed a double bottom pattern on the technical front and once again managed to close above its 100-day exponential moving average on daily charts.
The sudden surge in volumes with a rise in price suggests continuation of a rally into upcoming sessions. Traders can accumulate the stock in the Rs 3,520-3,530 range for the upside target of Rs 3,840 with stop loss below Rs 3,330.
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