The Indian market continues to witness new record highs and inch higher on the back of strong global and domestic cues.
Nifty surpassed 15,400 while Bank Nifty hit an all-time high above 37,700 on February 16 with PSU banks outperforming the market on news that the government is all set to bring amendments to two Acts to enable privatisation of PSU banks.
However, traders were also seen locking profits at higher levels as IT and FMCG stocks witnessed some selling pressure.
On the derivative front, however, the tug of war between bulls and bears is likely to continue in the coming sessions as well as Call writers are seen adding hefty open interest at 15,300 & 15,400 strikes, while Put writers also hold maximum open interest at 15,300 strikes as of now.
For the next few sessions, we expect the market to remain volatile and trade in the range of 15,100-15,400 with some stock-specific action.
Here are three buy calls for the next 2-3 weeks:
Lupin | LTP: Rs 1,099.90 | Target price: Rs 1,200 | Stop loss: Rs 1,025 | Upside: 9%
In the recent past, the stock witnessed a sharp rally from Rs 900 to Rs 1,100 and then witnessed profit-booking which took the stock towards Rs 980 once again.
However, it took support at its 100-day exponential moving average on the daily charts and witnessed a V-shape recovery, to once again surpass the Rs 1,080 level.
The stock has been consolidating in the range of Rs 1,050-1,090 for the last six trading sessions, and now has given a breakout above the bullish flag pattern which points towards the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 1,090-1,097 for the upside target of Rs 1,200.
Ambuja Cements | LTP: Rs 284 | Target price: Rs 314 | Stop loss: Rs 260 | Upside: 11%
This stock has been consistently moving higher on the charts with the formation of higher highs and bottoms.
It is holding well above its short and long-term moving averages on the daily and weekly charts as well.
At the current juncture, the stock has once again given a fresh breakout above its recent high of Rs 279 with a breakout above the symmetrical triangle pattern visible on the short-term charts.
Traders can accumulate the stock in the range of Rs 280-284 for the upside target of Rs 314.
Pidilite Industries | LTP: Rs 1,790 | Target price: Rs 1,978 | Stop loss: Rs 1,670 | Upside: 11%
After testing a 52-week high of Rs 1,842 in January 2021, the stock slipped back sharply towards Rs 1,660 on the back of profit-booking at higher levels.
However, it took support at its 20-day exponential moving average on the weekly interval and made a V-shape recovery with reclaiming Rs 1,750.
At the current juncture, the stock can be seen consolidating in the range of Rs 1,720-1,790 from the last two weeks.
The positive divergences on secondary oscillators along with price action suggest the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 1,780-1,790 for the upside target of Rs 1,978.
(The author is a senior technical analyst at SMC Global Securities)
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