Bulls made a comeback as the Indian market soared high and recovered from its last week's lows and the benchmark Nifty closed above 15,800 once again on July 13.
On the derivatives front, Call writers at 15,800 strike were seen unwinding their positions while Put writers added hefty open interest at 15,700 strike.
Nifty is trading above its long and short-term moving averages on the daily charts with the formation of a higher bottom.
For the banking index, 36,000 will be a strong hurdle now, above which, we can witness a fresh round of follow-up buying.
For Nifty, 15,900 would act as a major hurdle in the short term, above which, the index can march towards its record high and above 16,000.
Here are three buy calls for the next 3-4 weeks:
ICICI Bank | LTP: Rs 664 | Target price: 728 | Stop loss: Rs 615 | Upside: 10%
For nearly six weeks, this stock has been trading in a broader range of Rs 615-655.
It is well-placed above its key moving averages on the daily charts. This week, it has managed to give a breakout above the crucial resistance level of Rs 660 after a prolonged consolidation.
On the technical front, higher high and higher bottom formation is keeping the stock in a strong uptrend.
At the current juncture, 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 as well.
Traders can accumulate the stock in the range of Rs 655-665.
Federal Bank | LTP: Rs 89.30 | Target price: Rs 99 | Stop loss: Rs 82 | Upside: 11%
For the last one month, this stock has been fluctuating in a broader range of Rs 82 to Rs 88 along with multiple supports on the short-term intervals.
At the current juncture, the stock has given a fresh breakout above the neckline of inverted head and shoulder patterns on daily charts.
Besides, rising volumes with price action suggest a long build-up in the stock. Traders can accumulate it in the range of Rs 88-89.
Tata Chemicals | LTP: Rs 783.55 | Target price: Rs 892 | Stop loss: Rs 710 | Upside: 14%
In the recent past, this stock saw a sharp run from Rs 725 to Rs 775 in a short span of time.
However, it went into consolidation mode and has been fluctuating in the range of Rs 750-780 since then.
At the current juncture, this stock has formed a rectangle pattern on the daily charts and given a breakout above the same this week.
It has also given a breakout above the W-pattern formation on the broader charts which is bullish in nature and points towards the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 775-785.
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