Selling pressure at higher levels once dampened market sentiment as Nifty ended below 14,300 on April 20. Although pharma and auto counters tried to give some support but selling pressure in financials, IT and FMCG counters dragged the market down.
On the derivatives front, Call writers were seen adding hefty open interest at 14,500, 14,600 and 14,700 strikes which should act as a major hurdle for Nifty and will cap any sharp upside.
On the technical front, 14,200-14,150 will act as major support for Nifty. However, we could witness a fresh round of selling in the index if the 14,150 level is broken decisively in the upcoming sessions.
Here are three buy calls for the next 2-3 weeks:
Info Edge (India) | LTP: Rs 4,772 | Target price: Rs 5,625 | Stop loss: Rs 4,280 | Upside: 18%
After testing a 52-week high of Rs 5,880 in January 2021, this stock slipped back sharply towards Rs 4,100 due to profit-booking at higher levels.
However, it took support at its 200-day exponential moving average on the daily interval and made a V-shaped recovery to once again reclaim Rs 4,700 level.
At the current juncture, the stock can be seen trading well above its short and long-term moving averages with the formation of higher highs.
Additionally, the stock has formed an inverted head and shoulder pattern on the daily charts and is on the verge of a fresh breakout above the neckline of the pattern formation.
The positive divergences on secondary oscillators along with price action suggest the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 4,760-4,780 for the upside target of Rs 5,625.
Glenmark Pharmaceuticals | LTP: Rs 569 | Target price: Rs 652 | Stop loss: Rs 505 | Upside: 15%
Last week, this stock gave a fresh breakout after a prolonged consolidation of nearly eight months.
Prices had been witnessing a fluctuation in a broader range of Rs 445-545 since August 2020, sustaining well above their 200-day exponential moving average on the daily interval.
Now, prices are keeping well above their 200-day exponential moving average on the weekly charts as well which points towards the strength in the stock from a medium-term perspective.
On the technical front, follow-through buying has been observed in the stock after a breakout above the falling trendline of a sloping channel on short-term charts.
Traders can accumulate the stock in the range of Rs 560-570 for the upside target of Rs 652.
Lupin | LTP: Rs 1,088.70 | Target price: Rs 1,172 | Stop loss: Rs 1,020 | Upside: 8%
This stock has been consistently moving in a broader range of Rs 980-1,100 for the last three months.
At the current juncture, the stock has formed a bullish flag pattern on the weekly interval and given a breakout above the same.
Positive divergences on secondary oscillators suggest that the stock is all set for a next upswing as additional volumes with a rise in prices suggest a long build-up in the stock.
Traders can accumulate the stock in the range of Rs 1,075-1,090 for the upside target of Rs 1,172.
(The author is Senior Technical Analyst at SMC Global Securities)
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