The recent upward momentum was observed after a bounce from the 50 percent Fibonacci retracement level, which was calculated based on the prior advance from 15,183.40 in June 2022 to the high of 18,887.60 in December 2022.
On the weekly timeframe, the Nifty Index has formed an outside bar candlestick which indicates the rising volatility behind the prices.
On the daily time frame, the prices have sustained well above the key moving averages of 50 and 200-day EMA.
The index has a strong support at 17,500 (key support) followed by 17,300 (key support). While on the higher side the mark of 17,800 (key resistance) followed by 18,000 (key resistance) are crucial levels to watch out for.
The index may continue its upward momentum if 17,800 is surpassed which can move the prices higher till 18,000 levels. Our bullish view will be negated if 17m500 is breached on the lower side.
Here are three buy calls for next 2-3 week:
Lemon Tree Hotels: Buy | LTP: Rs 86.75 | Stop-Loss: Rs 77 | Target: Rs 102 | Return: 17 percent
Lemon Tree's stock is currently experiencing a strong uptrend, characterized by a consistent formation of Higher Highs and Higher Lows. This indicates that the stock is maintaining an upward momentum and is exhibiting a positive trend in its price movements.
The recent breakout from the Descending Triangle pattern indicates continuation of prior uptrend.
The prices have sustained well above its key moving averages of 50, 100 & 200-day EMA (exponential moving average) which confirms the presence of prior uptrend.
The RSI (relative strength index) on the daily timeframe has shown a breakout reflecting positive momentum.
Going ahead we expect the prices to move higher till Rs 102 where the stop-loss must be Rs 77 on the closing basis.
Navin Fluorine International: Buy | LTP: Rs 4,687.70 | Stop-Loss: Rs 4,440 | Target: Rs 5,200 | Return: 11 percent
The stock of Navin Fluorine has shown a change in the polarity at the level around Rs 4,100. This illustrates the positive undertone of the prices.
The stock on the daily timeframe has shown a breakout of the Inverse Head & Shoulder pattern which indicates continuation of the prior uptrend.
The prices have sustained well above its key moving average of 20-week EMA which have acted as a variable support to the prices.
Additionally, the RSI on the weekly timeframe has shown a breakout which indicates rising momentum in the trend.
Going ahead we expect the prices to move higher till the level of Rs 5,200 where the stop-loss must be Rs 4,440 on the closing basis.
Mahindra Holidays and Resorts India: Buy | LTP: Rs 290.90 | Stop-Loss: Rs 275 | Target: Rs 325 | Return: 12 percent
The stock has shown a change in the polarity at the level around Rs 255. This illustrates the positive undertone of the prices.
The recent breakout of the Bearish Channel indicates continuation of the prior uptrend, which was preceded by the retest at the CIP (change in the polarity) Level.
On the daily timeframe, the stock has been consistently trading near the upper Bollinger Band, indicating increased volatility.
Additionally, the RSI on the Weekly as well as on the daily timeframe has sustained well above the 50 mark which reflects the rising momentum in the prices.
In conclusion, based on these technical indicators, it is anticipated that the stock will continue to rise towards Rs 325 level with a suggested stop-loss at Rs 275 on a closing basis.
Disclaimer: The views and investment tips expressed by investment 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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