Shitij Gandhi, Senior Technical Analyst at SMC Global Securities
Indian markets witnessed heavy selling pressure in Tuesday's session as Nifty slipped back once again towards 18,000 levels with bears taking a grip on the markets. Banking, energy and metals counters remained worst performer while auto and IT supported markets up to some extent.
From the derivatives front, Call writers added hefty open interest at 18,100 and 18,200 strike while Put writers saw shifting at lower bands.
We expect the market to consolidate at higher levels in the coming sessions with the bias likely to remain in favour of bulls. The consolidation phase can prevail within range of 18,200-17,800 levels on the broader side.
Traders should keep stock specific action on radar, as volatility is likely to grip markets in the coming week once again.
Here are three buy calls for next 2-3 weeks:
Fortis Healthcare: Buy | LTP: Rs 285.25 | Stop Loss: Rs 258 | Target: Rs 314 | Return: 10.1 percent
After hitting its 52-week high of Rs 303.80 in August, the stock recorded profit-booking at higher levels and retraced towards Rs 240 levels. The stock can be seen trading in downward sloping channel since then.
In the recent past, the stock took support at its 200-day exponential moving average on daily charts and witnessed V-shaped recovery to once again reclaim a move above the Rs 270 levels.
From the technical front, the prices have given a breakout above the falling trend line of downward sloping channel. The rising volumes, along with price action, suggests for next up-leg into the prices.
Traders can accumulate the stock in range of Rs 280-285 levels for the upside target of Rs 314 levels with a stop loss below Rs 258.
Metropolis Healthcare: Buy | LTP: Rs 3,146.15 | Stop Loss: Rs 2,850 | Target: Rs 3,540 | Return: 12.5 percent
Through the last five months, the stock is seen consolidating in a broader range of Rs 2,600-3,200 with prices consistently maintaining a move above its long term moving averages. This week, the stock has witnessed a fresh breakout above the prolonged consolidation phase.
The rising volumes along with a rise in prices suggests for next up leg into the prices after a breakout.
Traders can accumulate the stock in the range of Rs 3,100-3,150 levels for the upside target of Rs 3,540 levels with stop loss below Rs 2,850.
Escorts: Buy | LTP: Rs 1,629.30 | Stop Loss: Rs 1,470 | Target: Rs 1,825 | Return: 12 percent
The stock took a decent rally from the Rs 1,150 levels to Rs 1,550 levels in a short span of time and then went into a consolidation phase. From the last two months, the stock can be seen fluctuating in a broader range of Rs 1,420-1,600 levels with prices holding well above its short and long term moving average on daily charts.
At the current juncture, stock has given a breakout above the key hurdle level of Rs 1,600 after a prolong consolidation.
From the technical front, a breakout above the rectangle pattern can be observed. The pattern breakout can be observed along with hefty volumes, which suggests for a long build-up into the prices.
Traders can accumulate the stock in range of Rs 1,600-1,630 levels for the upside target of Rs 1,825 levels with stop loss below Rs 1,470.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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