It seems that the Nifty has made a near-term bottom around 15,183 level, however, 15,950 is an immediate and critical hurdle as a 20-DMA (day moving average). Above this, we can expect a short-covering rally towards 16,200-16,500 levels.
On the downside, 15,700 is an immediate and strong support level then 15,500-15,350 is the next support area. The rupee is at a record low which is a cause of concern, however, it may act as a tailwind for IT stocks that provide support to the Nifty.
Bank Nifty has also created a decent base at 32,500 level, however, 20-DMA of 34,000 is an immediate hurdle; above this, we can expect a short-covering rally towards 34,500-35,000 levels. On the downside, 33,500-33,000 are immediate support levels.
Global cues will play an important role in the overall direction of the market where commodity prices, the situation on the Russia-Ukraine front, and economic data will be important. On the domestic front, monthly auto sales numbers and monsoon development are key triggers.
The market will remain volatile ahead of the June month F&O expiry, however, bulls are betting on a short-covering rally as the market is still oversold.
Here are three buy calls for next 2-3 weeks:
Jamna Auto Industries: Buy | LTP: Rs 117.65 | Stop-Loss: Rs 110 | Target: Rs 130 | Return: 10 percent
The counter is in a classical uptrend where it is breaking out symmetrical triangle formation after building a strong base at its 200-DMA. On an immediate basis, Rs 125 is the horizontal resistance line; above this, we can expect a rally towards Rs 133-136 levels.
On the downside, Rs 112 is an immediate and strong support. Momentum indicators are positively poised to support the current strength of the trend.
PSP Projects: Buy | LTP: Rs 559 | Stop-Loss: Rs 520 | Target: Rs 625 | Return: 12 percent
The counter has created a strong base at Rs 460 level and it is breaking out symmetrical triangle as well as a double bottom formation on the daily chart.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, 100-DMA of Rs 525 will act as an immediate and strong support level.
KPIT Technologies: Buy | LTP: Rs 516 | Stop-Loss: Rs 480 | Target: Rs 570 | Return: 10 percent
The counter is bottoming out after a meaningful correction and there is a breakout of falling wedge formation which is a sign of bullish reversal.
It managed to close above its 200 and 50-DMA with positive divergence in RSI (relative strength index). On the upside, 100-DMA of Rs 545 is an immediate hurdle then Rs 570 is the next target level.
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