Highly volatile moves were seen in the Indian market during the last few sessions as a tug of war between bulls and bears kept Nifty in the range of 13,400 to 13,600.
Bank Nifty showed some strength as financial stocks like Bajaj twins and HDFC led the market gains.
On the derivatives front, Put writers at 13,500 strike were seen adding consistent open interest while Call writers at 13,600 strike holds maximum open interest concentration.
On the technical front, secondary oscillators suggest volatility is likely to grip the market in the coming sessions as well.
However, the bias is likely to remain in favour of bulls as long as the Nifty is trading above the 13,400 mark.
On the higher side, a decisive move beyond the 13,600 mark in Nifty would add further follow-up buying which could take Nifty towards 13,750 levels as well.
We believe Bank Nifty to remain strong and may outperform other sectors.
Here are three buy calls for the next 3-4 weeks:
Muthoot Finance | LTP: Rs 1,210 | Target price: Rs 1,365 | Stop loss: Rs 1,090 | Upside: 13%
After testing the Rs 1,298 level in early November 2020, the stock was been consistently moving lower in a downward sloping channel with the formation of the lower high and lower bottom pattern.
However, it took support at its 100-day exponential moving average which was placed at Rs 1,140 level and witnessed a V-shape recovery from thereon to get back above its short and long-term moving averages on the daily interval.
At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and is on the verge of breaking out above the neckline of the pattern formation.
The positive divergences on secondary oscillators suggest the next upswing in the prices. Traders can accumulate the stock in the range of Rs 1,195-1,205.
Manappuram Finance | LTP: Rs 174.25 | Target price: Rs 191 | Stop loss: Rs 157 | Upside: 10%
In the recent past, after witnessing a breakout above Rs 170 level, the stock went up quickly and tested the Rs 180 level in a short span of time.
However, since then consolidation in the range of Rs 170-180 levels can be seen in the stock, along with consistent buying at support levels.
At the current juncture, the stock is giving a fresh breakout as marginally higher volumes have been witnessed with a rise in price.
On the technical front, the stock has formed a continuation pattern on the daily charts.
Traders can accumulate the stock in the range of Rs 170-175.
Britannia Industries | LTP: Rs 3,759.95 | Target price: Rs 4,130 | Stop loss: Rs 3,500 | Upside: 10%
After taking support at its 200-day exponential moving average on the daily charts, the stock surpassed the Rs 3,600 level in the recent past.
The breakout above the ascending triangle pattern can be witnessed on the charts as the stock is trading in a rising channel and can be seen forming a high bottom pattern.
On the weekly interval as well, the stock saw an almost V-shape recovery from the lows of Rs 3,400 level and now is on the verge of a fresh breakout above the falling trendline of long-term channel.
Traders can accumulate the stock in the range of Rs 3,750-3,770.
(The author is Senior Technical Analyst at SMC Global Securities)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.