Santosh Meena, Head of Research at Swastika Investmart
The Nifty50 sees a fresh expansion phase after breaking out down-sloping channel formation where 18,000-18,200 is an immediate target zone. If the Nifty manages to take out 18,200 level, then the bulls will eye for a fresh all-time high.
On the downside, the cluster of 50 and 100-DMA (daily moving average), around 17,500 level will act as an immediate and strong support level at any pullback while 17,300-17,150 is the next demand zone.
Momentum indicator RSI (relative strength index) has moved above the 60 mark that may generate thrust for further upside. The Nifty is giving proper follow-up of bullish reversal morning star candlestick formation on the weekly chart.
Bank Nifty also sees a strong move after crossing the cluster of 20-DMA and 200-DMA in the 35,700-35,800 area. The upside momentum may continue, however, 37,200-37,600 is a critical resistance zone where we can expect a pullback because 37,200 is a cluster of 50 and 100-DMA and 37,580 is a previous swing high. On the downside, 36,500 is an immediate support level while 36,000-35,700 is a critical demand zone.
Here are three buy calls for next 2-3 weeks:
Astral: Buy | LTP: Rs 2,396.65 | Stop-Loss: Rs 2,260 | Target: Rs 2,550 | Return: 6.4 percent
The counter is in a classical uptrend where it is resuming its uptrend after breaking out downsloping channel formation. Rs 2,430 is an immediate horizontal resistance; a close above this will lead to further bullish momentum towards the Rs 2,550 level.
On the downside, Rs 2,335-2,300 is an immediate demand zone, while Rs 2,230-2,170 will be the next important support area. It is trading above its all-important moving averages with positive bias in both MACD (moving average convergence divergence) and RSI.
Triveni Engineering: Buy | LTP: Rs 249.5 | Stop-Loss: Rs 230 | Target: Rs 300 | Return: 20 percent
The counter is in strong bullish momentum where it is continuing its higher highs and highs lows formation and has given a breakout of a rising channel pattern. It is respecting its 100-DMA beautifully, while 20-DMA is providing immediate support.
The Rs 235-230 area will act as an immediate and strong support zone, while Rs 210 is the next important support level. MACD and ADX (average directional index) both are positively poised to support the strength of the current trend while RSI has moved above the 60 mark for further strength.
Monte Carlo Fashions: Buy | LTP: Rs 664 | Stop-Loss: Rs 620 | Target: Rs 750 | Return: 13 percent
The counter is witnessing a breakout of bullish pennant formation with decent volume to resume its strong bullish momentum. It is also taking out multi-month high with strong bullish bias that may lead to a to fresh expansion phase towards Rs 825-900 levels where Rs 750 is an immediate target.
On the downside, Rs 630-620 is an immediate and strong support zone while Rs 590 is the next critical support.
MACD and ADX both are positively poised to support the strength of the current trend while RSI has moved above the 60 mark for further strength.
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