The index reached a new high at 22,526 at the beginning of the week, but failed to sustain this elevated level and subsequently moved downward, forming lower lows and lower highs.
On the weekly charts, the Nifty found support at the nine-week EMA (exponential moving average), which has repeatedly acted as a support zone in the recent weeks, suggesting a potential shift to the upside. Additionally, on the daily scale, the 34-EMA has proven to be a strong support, aligning with the higher time frame.
Key technical indicators, such as the relative strength index (RSI), reflect favourable readings above 60 on weekly and monthly intervals, while on the daily scale, it hovers around 50, indicating positive momentum.
Looking ahead, immediate resistance levels are identified at 22,300, representing a pivotal level on higher time frames, with further resistance at 22,500. Crucial support levels are noted at 21,900 and 21,800.
Given the current chart patterns, a strong bullish phase is anticipated. It is recommended to consider buying at the current market price, with potential upside targets ranging from 22,400 to 22,600. To manage risks effectively, it is advised to implement a strict stop-loss at 21,850 on a closing basis.
Here are three buy calls for the next 2-3 weeks:
HEG: Buy | LTP: Rs 1,814 | Stop-Loss: Rs 1,662 | Target: Rs 2,168 | Return: 20 percent
HEG is currently demonstrating robust momentum, maintaining its position well above its long-term sloping trendline connecting the swing highs of 2018 and 2021. Furthermore, the stock has experienced volume accumulation, surging above its 21-week average volume.
Meanwhile, HEG has upheld its position above both the 20-week and 50-week exponential moving averages (EMA), providing additional confirmation of the bullish trend.
In terms of momentum indicators, a positive shift has been observed in RSI (relative strength index) polarity, indicating momentum moving towards the positive side. This is further reinforced by the RSI giving a bullish crossover of its 9EMA, highlighting the positive momentum in play.
Looking forward, there is an anticipation of further price ascent towards Rs 2,168 mark. It is recommended to set a stop-loss at Rs 1,662, strictly based on the closing basis.
Mphasis: Buy | LTP: Rs 2,482.55 | Stop-Loss: Rs 2,273 | Target: Rs 2,891 | Return: 16 percent
On the weekly scale, Mphasis exhibits a notably robust price structure, forming a large base formation. Recent price action indicates the stock is navigating within a rising channel, with the current week seeing a rebound from the lower channel boundary accompanied by volume.
Additionally, Mphasis has displayed mean reversion from its key averages, finding support at the 50-week and 100-week EMAs. This shift, where previous resistances now act as supports, signifies a polarity change and indicates an upward trend trajectory.
Moreover, comparing Mphasis to the Nifty via a ratio chart reveals that the ratio is approaching a key support level and rebounding from the previous swing, suggesting sustained outperformance.
Going ahead, we expect the prices to go higher till the level of Rs 2,891. The bullish view will be negated if we see prices sustaining below Rs 2,273 level.
Colgate Palmolive: Buy | LTP: Rs 2,687 | Stop-Loss: Rs 2,465 | Target: Rs 3,216 | Return: 20 percent
Colgate Palmolive showcases a robust price structure, characterized by a clear uptrend since February 2023, marked by consistent higher highs and higher lows. Currently, the stock maintains its position above a congestion zone, trading at its all-time high, indicating significant strength in the ongoing uptrend.
This trend is supported by the stock's ability to stay above both the 12-week and 26-week moving averages. Furthermore, the RSI consistently above the 60 mark across time frames adds momentum to the upward trend, affirming the bullish sentiment surrounding Colgate Palmolive.
Additionally, analyzing Colgate Palmolive against the Nifty using a ratio chart reveals a continuous upward trend, signaling sustained outperformance compared to the broader market.
Looking forward, there is an anticipation of further price ascent towards Rs 3,216 mark. It is recommended to set a stop-loss at Rs 2,465, strictly based on the closing basis.
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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