The Indian market began this week on a positive note as the Nifty again surged towards 15,900 with strong support from banking counters. However, gains didn’t last long as selling pressure at higher levels once again saw the index slide to 15,800.
On the technical front, the Bank Nifty managed to close above the key resistance level of 35,500, pointing to more positive moves in the coming sessions.
On the higher side, 16,000 and 36,000 levels will act as strong hurdles in the short term for the Nifty and the Bank Nifty, respectively.
A decisive move above these levels will again trigger follow-up buying in the market. Banking counters can lead the market in the coming days.
Here are three buy calls for the next 3-4 weeks:
IndusInd Bank | LTP: Rs 1,028.55 | Target price: Rs 1,135 | Stop loss: Rs 965 | Upside: 10%
For almost six weeks, this stock has been trading in a broader range of Rs 960-1,030.
It is well-placed above its key moving averages on the daily charts. This week, the stock has managed to give a breakout above the crucial resistance level of Rs 1,030 after a prolonged consolidation.
On the technical front, higher-high and higher-bottom formations are keeping the stock in a strong uptrend.
The positive divergences on secondary oscillators along with consolidation breakout suggest the next upswing in the prices.
Traders can accumulate the stock in the Rs 1,020-1,030 range for an upside target of Rs 1,135.
Godrej Properties | LTP: Rs 1,428.60 | Target price: Rs 1,600 | Stop loss: Rs 1,320 | Upside: 12%
In the recent past, the stock took support at its 200-day exponential moving average on the daily interval which was placed at around Rs 1,220 and bounced back sharply towards Rs 1,400 in a short time.
However, since then, it was seen fluctuating in a broader range of Rs 1,350-1,450 along with multiple supports on the short-term charts.
The stock has given a fresh breakout above the neckline of an inverted head and shoulder pattern. The breakout has been observed with rising volumes.
Traders can accumulate the stock in the Rs 1,425-1,435 range for an upside target of Rs 1,600.
AU Small Finance Bank | LTP: Rs 1,115 | Target price: Rs 1,350 | Stop loss: Rs 975 | Upside: 21%
In the recent past, this stock dipped from Rs 1,350 to its 200-day exponential moving average on the daily charts and took support there.
However, it has since recovered to surpass the Rs 1,100 level. The price-volume breakout has been observed this week. On the short-term charts, the stock has given a breakout above the rectangle pattern after consolidating in the Rs 1,000-1,100 range for more than four weeks.
Rising volumes along with rising prices suggest strength in the current breakout, which can push the stock much higher. Traders can accumulate the stock in the Rs 1,105-1,115 range for an upside target of Rs 1,350.
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.
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