By Kunal Shah, Senior Technical & Derivatives analyst at LKP Securities
Nifty remained sideways, however, the trend remains positive as the index closed above the critical near-term moving average. The momentum oscillator RSI (relative strength index) is in a bullish crossover.
Resistance on the higher end is placed at 18,800-18,900. On the lower end, the support is expected at 18,700-18,600.
Bank Nifty index is also currently in a phase of sideways consolidation. This consolidation indicates a lack of a clear directional bias in the market. On the downside, the index has a support level at 43,700, which has held during the consolidation phase and can act as a potential floor for prices.
On the upside, the Bank Nifty faces resistance around the 44,300 levels, which has limited the upward movement. Traders and investors are closely watching for a break on either side of this consolidation range.
A breakout above the resistance level of 44,300 could signal a bullish move and potentially lead to a trending upward movement. Conversely, a breakdown below the support level of 43,700 could trigger a bearish move and lead to a trending downward movement.
Here are three buy calls for next 2-3 weeks:
Godfrey Phillips India: Buy | LTP: Rs 1,761 | Stop-Loss: Rs 1,690 | Target: Rs 1,900-2,000 | Return: 14 percent
The stock has experienced volume buying at the support level of Rs 1,700. This suggests that there is significant buying interest from market participants at this level, which may act as a support and provide a cushion for the stock price.
The stock has managed to surpass its previous 1-week high. This indicates a potential bullish momentum as the stock is trading at higher levels than it has in the recent past. It suggests that there is buying pressure and positive sentiment in the market for the stock.
The momentum indicator, relative strength index (RSI) , has shown a positive crossover. This crossover suggests an increase in buying momentum and strength in the stock's price movement. It indicates a potential continuation of the upward trend or bullish sentiment in the stock.
Zydus Lifesciences: Buy | LTP: Rs 532 | Stop-Loss: Rs 510 | Target: Rs 560-590 | Return: 11 percent
The stock has experienced a volume breakout on the daily chart. This indicates a significant increase in trading volume, suggesting higher market participation and potential buying interest in the stock.
The momentum indicator RSI, has shown a buy crossover. This suggests that the buying momentum in the stock has increased, indicating a potential bullish signal. The moving average convergence divergence (MACD) indicator has shown a zero line crossover. This indicates a change in trend momentum and suggests a potential shift from bearish to bullish sentiment in the stock.
The stock has a support level at Rs 510, which may act as a price floor and provide a level of support for the stock. Additionally, there is a potential upside target range of Rs 560-590, indicating possible price levels the stock may reach in the future.
Grasim Industries: Buy | LTP: Rs 1,779 | Stop-Loss: Rs 1,725 | Target: Rs 1,850-1,900 | Return: 7 percent
Grasim has broken out a period of consolidation and is currently trading above its moving averages. This indicates positive momentum and suggests a potential upward trend.
There is a possibility for the stock to reach a range of Rs 1,850-1,900 in the near future. On the downside, there is support at Rs 1,700, which may act as a price level where buying pressure outweighs selling pressure.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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