Nifty scaled a new all-time high of 14,256 on January 7 but ended flat with a negative bias down 8 points at 14,137.
The broader markets continued their positive momentum as the midcap index made a record high crossing its previous peak of January 2018.
Bank Nifty is lagging to cross its previous high placed at 32,615 which we believe would be achieved in the current month as the set up is positive.
The advance-decline in the derivatives segment remained strong with 122 advances and 17 declines for the current expiry month-to-date.
The focus now will be on the third-quarter results for FY21 starting from this week and we could see individual price performance with respect to the outcome and guidance from the companies.
Nifty will face resistance near 14,350 being the monthly pivot. Any decline below 13,950 will turn the monthly candle negative and we can expect sharp profit-booking in the index.
Here are three buy calls for the next 3-4 weeks:
The stock is trading at a 5-month high with an inside range on the monthly charts indicating a breakout from the current levels.
It has completed its price and time-wise consolidation after a sharp down-move from the highs of Rs 452 levels.
The stock’s key technical indicators on the near-term timeframe chart are positively poised.
Ramco Cements | LTP: Rs 833 | Target price: Rs 940 | Stop loss: Rs 767 | Upside: 13%
This stock has taken support around its 100-day SMA after profit-booking. The stock has given a breakout from its intermediate downward sloping trendline.
In case of any decline, its recent swing low will work as the key reversal point which is placed around Rs 767.
Maruti Suzuki India | LTP: Rs 7,576.85 | Target price: Rs 8,500 | Stop loss: Rs 7,125 | Upside: 12%
The stock is trending above its 200-week average with positive price action and is on the verge of giving a breakout above its 2-year highs.
Weekly RSI is trading above 50 levels, indicating a bullish setup for the stock.
In case of a major decline, the long-term averages of Rs 7,250-7,320 levels would act as strong support for the stock.
(The author is Senior Research Analyst at Reliance Securities)
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