On the weekly timeframe, we can spot that the prices have taken support from the 50 percent Fibonacci retracement level of the prior advance from 16,747 (September 2022) till 18,887 (November 2022), which is again in sync with the bearish trend line which shows change in the polarity.
Nifty on daily charts, we can spot that the prices have started to trade above 20-day SMA (simple moving average) which shows the improving undertone of the prices.
The momentum indicator RSI (relative strength index), plotted on the weekly timeframe is moving with the trend confirming the current trend.
The Nifty has immediate resistance placed at 18,250 (multiple touch point) followed by 18,400 (key resistance) levels. The downside support for the index is placed at 18,000 (psychological support) followed by 17,775 (key support).
Based on the overall trend and indications from indicators, it is expected that the Nifty will stay in rangebound territory of 18,000 – 18,400 levels.
Here are three buy calls for next 2-3 weeks:
Persistent Systems: Buy | LTP: Rs 4,258 | Stop-Loss: Rs 3,800 | Target: Rs 4,700 | Return: 10 percent
The stock has exhibited an uptrend pattern, as evidenced by its formation of higher highs and higher lows.
The stock has shown a bounce to the upside after retesting the neckline of double bottom pattern. The breakout was scored on November 21, 2022. The breakout is confirmed as it was accompanied by higher volumes.
The stock price on the daily timeframe have sustained above key of 50, 100 & 200-day EMA (exponential moving average). This confirms the uptrend.
The weekly relative strength index (RSI) has shown a range shift which reflects the rising momentum for the prices.
Going ahead we expect the prices to move higher till the level of Rs 4,700 where the stop-loss must be Rs 3,800 on the closing basis.
Tata Steel: Buy | LTP: Rs 123.55 | Stop-Loss: Rs 116 | Target: Rs 138 | Return: 12 percent
When considering the overall performance of Tata Steel, it can be observed that the prices have risen after bouncing off the 38.2 percent Fibonacci retracement level, which is calculated using the prior advance of the stock from a low of Rs 25 level in March 2020 to a high of Rs 153 level in August 2021.
In the first week of January 2023, the stock broke out of a rectangle pattern, indicating the start of an upward trend.
The stock's daily price is consistently close to the upper Bollinger band, indicating an increase in volatility, which is typically associated with an upward movement in the stock price.
RSI on the weekly timeframe has shown a breakout too which reflects strong momentum in the prices.
Going ahead we expect the prices to move higher till the level of Rs 138 where the stop-loss must be Rs 116 on the closing basis.
Mrs Bectors Food Specialities: Buy | LTP: Rs 475 | Stop-Loss: Rs 431 | Target: Rs 550 | Return: 15 percent
Mrs Bectors Food Specialities is currently trading at 52 week high which tells that the stock already is in strong momentum.
The stock in the latest trading week has given a breakout from the Inverse Head and Shoulder pattern which indicates beginning of the trend towards upside.
The stock has shown a bounce while taking support from the 18-week EMA which acted as a strong variable support for the prices.
The RSI plotted on weekly timeframe has shown a bullish reversal which reflects the rising momentum of the underlying.
Going ahead we expect the prices to move Higher till Rs 550 where the stop-loss must be Rs 431 on the closing basis.
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