The Indian market witnessed selling pressure at higher levels as Nifty slipped below 15,750 due to profit booking on June 29.
Metal and auto space along with banking counters dragged the market while pharma and FMCG showed some buying interest.
On the derivatives front, Call writers were observed adding hefty open interest at 15,800 and 15,900 strikes while Put writers were seen shifting to lower bands.
Bank Nifty managed to hold above 35,000 which could act as a strong support for the index in the upcoming sessions.
On the downside, any break below 34,900 could add further selling pressure on Bank Nifty. For Nifty, 15,650 will be immediate support below which the index can further slide to 15,450 as well.
In the upcoming sessions, any sharp gains in the market may remain capped as long as Nifty trades below 15,900.
A tug of war between bulls and bears is likely to keep markets on a volatile path.
Here are three buy calls for the next 2-3 weeks:
Alkem Laboratories | LTP: Rs 3,200 | Target price: 3,705 | Stop loss: Rs 2,900 | Upside: 16%
On the broader charts, this stock has been trading in a broader range of Rs 2,550-3,175 for nearly the last one year.
The stock is well-placed above its key moving averages on both short and long-term charts.
This month, the stock managed to give a breakout above the crucial resistance level of Rs 3,200 after a prolonged consolidation.
On the technical front, higher high and higher bottom formations are keeping the stock in a strong uptrend.
Positive divergences on secondary oscillators along with consolidation breakout suggest the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 3,190-3,200 for the upside target of Rs 3,705.
Ajanta Pharma | LTP: Rs 2,087 | Target price: Rs 2,415 | Stop loss: Rs 1,850 | Upside: 16%
In the recent past, this stock took support at its 100-day exponential moving average on the daily interval which was placed around Rs 1,720 and bounced back sharply towards Rs 2,000 in a short span of time.
However, since then, prices have been seen fluctuating in a broader range of Rs 1,880-2,050 along with multiple supports on the short-term charts.
On the broader charts, the stock can be seen trading in bullish territory with the formation of a higher bottom formation.
The stock has given a fresh breakout above Rs 2,050 after a consolidation of nearly eight weeks.
The breakout of the rectangle pattern along with rising volumes suggests the continuation of its previous bull trend which could move the prices higher.
Traders can accumulate the stock in the range of Rs 2,060-2,085 for the upside target of Rs 2,415.
After testing the level of Rs 3,525 in the recent past, this stock almost saw a V-shape recovery and reclaimed the Rs 4,000 level in a short span of time.
This stock has formed an inverted head and shoulder pattern on the daily charts and given a breakout above the neckline of the pattern formation.
Moreover, on the short-term charts, this stock has given breakout above the ascending triangle pattern.
The rising volumes along with rising prices suggest strength in the current breakout which could move the stock much higher from the current levels.
Traders can accumulate the stock in the range of Rs 4,100-4,135 for the upside target of Rs 4,800.
(The author is a Senior Technical Analyst at SMC Global Securities)
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