By Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the monthly charts, the Nifty is sustaining above the breakout of the Cup & Handle pattern at life-high levels indicating a strong positive undertone of the index. On the weekly charts, the stock has been consistently forming higher-top-higher-bottom patterns since April 2023.
On the daily timeframe, the Index is moving in a range of 19,300 – 19,567 level at a record high level for the last 8 days indicating short-term pause in the primary uptrend.
We witnessed, the Nifty has been consistently respecting the support level of 13-day EMA (exponential moving average - 19,252) since April 2023 indicating strong strength of the primary bullish trend. The momentum indicator RSI (relative strength index) has sustained above 65 level in all the time frames like daily, weekly and monthly indicating strong positive momentum of the index.
The overall trend looks positive for the Nifty index, we expect the prices to move higher to 19,800 followed by 20,060 levels in the coming future.
Here are three buy calls for next 2-3 weeks:
PB Fintech: Buy | LTP: Rs 762.85 | Stop-Loss: Rs 725 | Target: Rs 885 | Return: 16 percent
Policybazaar stock, after experiencing a correction since November 2021, has established a solid support base ranging from Rs 400 on the lower side to Rs 650 on the higher side.
Recently, the stock broke out of the Cup & Handle pattern in late June 2023, indicating a continuation of the upward trend. On the daily timeframe, Policybazaar is currently trading above important moving averages, specifically the 50-day and 200-day EMAs.
This confirms the presence of an uptrend in the stock's price. Moreover, the relative strength index (RSI) on the weekly timeframe is showing positive momentum, as it has risen and sustained well above the 60 mark.
Based on our analysis, we anticipate that the prices of Policybazaar will continue to rise towards Rs 885 level. It is crucial to strictly maintain a stop-loss at Rs 720, based on the closing prices.
KIMS: Buy | LTP: Rs 1,843.25 | Stop-Loss: Rs 1,760 | Target: Rs 2,100 | Return: 14 percent
Krishna Institute of Medical Sciences (KIMS) stock is currently demonstrating strong momentum as it trades at record highs. In addition, a breakout of the rounding bottom pattern on the weekly timeframe in late June 2023 suggests a continuation of the upward trend.
Furthermore, the RSI has shown a breakout, indicating increasing momentum in the stock's price. Given these compelling factors, it can be inferred that KIMS stock is displaying robust performance.
Looking ahead, we anticipate the prices to climb towards Rs 2,100 level. It is recommended to set a stop-loss at Rs 1,760 based on closing prices to effectively manage potential downside risks.
RBL Bank: Buy | LTP: Rs 197.85 | Stop-Loss: Rs 180 | Target: Rs 240 | Return: 21 percent
RBL Bank is consistently sustaining at 52 week high indicating positive undertone of the stock. On the weekly charts, the stock has given a Cup & Handle pattern breakout with volume confirmation which confirms the bullish structure of the stock.
On the daily charts, the stock has given an Inverted Head & Shoulder pattern breakout few days back. Also the stock is sustaining above its important moving averages like 50, 100 & 200 Day SMA which shows the strong bullish sentiments of the stock.
The momentum Indicator RSI on the weekly timeframe is rising and sustaining above 65 levels reflecting presence of positive momentum.
We expect the prices to move higher till Rs 240 level where the stop-loss must be Rs 180 strictly 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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