Shitij Gandhi
Nifty rallied for the fifth consecutive session on July 8 and touched 10,800 levels backed by strong global cues.
This time, Bank Nifty took the lead from the front and rallied sharply to regain momentum above its 100-days exponential moving average on the daily charts.
On the derivative front, put writers were once again seen shifting to higher bands while call writers also seem to be feeling discomfort at the current juncture which suggests that bullish momentum will likely continue in the coming sessions as well.
On the technical front, Bank Nifty is looking much stronger than Nifty and it is likely to test 23,000 levels in the coming sessions.
On the downside, 10,600 and 22,000 should act as strong support for Nifty and Bank Nifty, respectively. Any dip in the prices should be used to create fresh longs.
Here are three buy calls for the next 3-4 weeks:
L&T Finance Holdings | Buy | LTP: Rs 71.50 | Target price: Rs 80 | Stop loss: Rs 65 | Upside: 12%
The stock has been maintaining its uptrend, trading in a rising channel on the daily charts with the formation of a higher high pattern.
At the current juncture, the stock has given a fresh breakout above its 100-days exponential moving average on the daily interval along with marginally higher volumes.
Additionally, the breakout can be seen above the neckline of the inverted head and shoulder pattern which points towards more upside in the prices moving forward.
Traders can accumulate the stock in the range of Rs 70-72 levels.
Exide Industries | Buy | LTP: Rs 155.10 | Target price: Rs 169 | Stop loss: Rs 142.50 | Upside: 9%
In the recent past, the stock tested its 200-days exponential moving average on the daily interval around Rs 175 and retraced back towards Rs 145 due to profit-booking.
At the current juncture, the stock has formed a W-pattern on the daily interval and once again surpassed above its 100-days exponential moving average on the daily charts along with positive divergences on secondary oscillators.
The stock has multiple supports on the downside which could limit the sharp fall in prices. Traders can accumulate the stock in the range of Rs 152-154.
The stock has been consolidating in a broader range of Rs 280-320 for more than four weeks along with consistent buying around support levels.
This week, the stock has given a fresh breakout above the consolidation zone along with marginally higher volumes which suggest next upswing in the prices.
Traders can accumulate the stock in the range of Rs 312-315.
(The author is Senior Technical Analyst at SMC Global Securities)
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