Nifty ended 0.65 percent higher at 15,737.75 on June 10.
On the weekly timeframe, the index is maintaining its bullish formation of the higher top higher bottom which means the medium to longer-term uptrend is still intact but some correction may happen in the short term.
It remains above the long-term moving averages of 50, 100 and 200-day SMA. Momentum indicator RSI plotted on the daily timeframe can be seen turning down from the overbought zone which indicates bullish momentum has lost and we may see some profit-booking in the market in the short term.
The key support levels to watch out for in the short term are 15,374 and 15,145.
On the upside, key resistance levels are 15,800. If the index sustains above this level, we might see the index head higher towards 15,986 and 16,687.
We believe that the long-term bullish trend is intact but in the short to medium term, we might see some profit booking in the index.
If the Nifty goes below 15,500 we can see some correction till 15,374 – 15,145 levels.
Here are three buy calls for the next 3-4 weeks:
Infosys | LTP: Rs 1,424.25 | Target price: Rs 1,795 | Stop loss: Rs 1,311 | Upside: 26%
On the monthly charts, this stock has maintained its strong bullish mode with the formation of a higher top higher bottom.
On the weekly charts, the stock took support at 20-week SMA a couple of weeks back and started moving higher which shows the positive sentiment of the stock.
Momentum indicator RSI plotted on multiple timeframes can be seen placed above 60 level and moving higher, indicating the stock is currently in a strong bullish momentum.
Resistance is placed at Rs 1,540, followed by Rs 1,681 and eventually towards Rs 1,795.
The key level to watch out for is Rs 1,311, followed by Rs 1,231. One can buy the stock at the current levels for the target of Rs 1,540, followed by Rs 1,681 and Rs 1,795.
HCL Tech | LTP: Rs 968.25 | Target price: Rs 1,157 | Stop loss: Rs 890 | Upside: 19%
HCL Tech has been forming a higher top higher bottom pattern on daily, weekly and monthly charts which shows a strong positive undertone of the stock for the medium to long term.
On the daily charts, we have seen that the stock has bottomed out at Rs 900 mark after forming a triple bottom pattern.
It has sustained above 100-day SMA with volume confirmation a couple of days back which indicates the strong bullish nature of the stock.
On the indicator front, the RSI plotted on multiple timeframes can be seen placed above 50 level and moving higher, indicating the stock is currently in a strong positive momentum.
Going ahead, the immediate resistance is placed at Rs 1,067, followed by Rs 1,157.
The key support levels are Rs 890 and Rs 800. One can buy the stock at the current levels with a target of Rs 1,067, followed by Rs 1,157.
Deepak Nitrite | LTP: Rs 1,786 | Target price: Rs 2,058 | Stop loss: Rs 1,712 | Upside: 15%
This stock has been forming a bullish pattern of higher top higher bottom on the monthly timeframes since July 2020 which shows a strong positive undertone of the stock for the long term.
After making an all-time high at Rs 1,988 in May 2021, the stock has corrected till Rs 1,712 which is a 50 percent retracement level of the previous advance from Rs 1,428–1,988 where it took the support and bounced back.
On the daily charts, we witnessed consolidation breakout which has been forming for the last three weeks.
The ADX plotted on the medium-term can be seen moving higher, indicating strong momentum of the current up move.
The immediate resistance is placed at Rs 1,988, followed by Rs 2,058.
The key support levels are Rs 1,712 and Rs 1,533. One can buy the stock at the current levels for the target of Rs 1,988, followed by Rs 2,058.
(The author is AVP - Technical Research at GEPL Capital)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.