The Indian market made a remarkable comeback in the last four sessions of the week gone by, as it not only recovered from lows but also went on to clock fresh highs.
Ideally, after the market surpasses previous highs, caution should be negated but there are a few time-wise projections and negative divergence in the RSI-smoothened oscillator holding us back.
As far as levels are concerned, every 100 points above from here would be seen as immediate resistance— 17,900–18,000. On the other hand, 17,700–17,650 will be key supports.
We advise traders to continue with a stock-specific approach but keep booking timely profits and avoid carrying aggressive overnight bets.
All eyes will be on global markets and on how the banking index moves, which could probably decide the next path of action for the market.
Here are two buy and one sell calls for the next two-three weeks:
Blue Star | Buy | LTP: Rs 897.85 | Target price: Rs 960 | Stop loss: Rs 853 | Upside: 7%
This stock has been consolidating for the last five–six months with no real momentum in the counter.
On September 24, however, it suddenly took off after surpassing the sturdy wall of Rs 890. This move was accompanied by sizable volumes, providing credence to the move.
Price-wise, the daily chart now exhibits a bullish cup and handle pattern and we expect a decent move in this stock in the coming week.
We recommend buying on a small decline towards Rs 890–Rs 880 for a short-term target of Rs 960. The stop loss can be placed at Rs 853.
ONGC | Buy | LTP: Rs 136.10 | Target price: Rs 149 | Stop loss: Rs 129.80 | Upside: 9.5%
This stock has failed to live up to the expectations in the last seven years now.
In fact, in the ongoing bullrun as well, this stock did not participate much but now, with crude oil prices trading at their three-year high, the stock has started to show some strength.
With the previous week’s uptick, it has finally managed to surpass the key 200-day simple moving average on the weekly timeframe chart for the first time since May 2019.
In addition, the ADX (14) indicator has also started displaying an upward trajectory. Hence, one can look to buy this stock for the near-term target of Rs 149. The stop loss can be placed at Rs 129.80.
Jubilant FoodWorks | Sell | LTP: Rs 4,117 | Target price: Rs 3,950 | Stop loss: Rs 4,240 | Downside: 4%
We have seen a spectacular move in this stock over the last few months and there has been no stopping at all.
The stock flew over Rs 4,000 to clock fresh highs but for the last couple of weeks, we are seeing some fatigue at the higher levels.
Despite making several attempts, it is unable to go beyond the Rs 4,200-mark. On September 24, there was a slight drop in prices after the mid-session.
Since it failed on slightly higher volumes, we expect the weakness to continue in the coming sessions. Hence, traders are advised to short with strict stop loss above Rs 4,240 for a target of Rs 3,950.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)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.com advises users to check with certified experts before taking any investment decisions.