Pravesh Gour, Senior Technical Analyst at Swastika Investmart
The Nifty50 is consolidating in the range of 18,450-18,650 for the last couple of days followed by strong gain. If Nifty slips below the 18,450 level, then we can expect a profit booking in the market, where 18,181 will be the next support level, while if Nifty trades above 18,650 level, then we can expect a move towards all-time high of 18,888.
Bank Nifty is also consolidating above its 20-DMA, which is currently placed at the 43,900 mark. On the upside, 44,500 is acting as an immediate hurdle; above this, it may head towards the 45,000 level.
On the downside, if it slips below its 20-DMA, then we can expect a profit booking, where 43,300 will be the next support level.
Here are three buy calls for next 2-3 weeks:
Talbros Automotive Components: Buy | LTP: Rs 647 | Stop-Loss: Rs 600 | Target: Rs 724 | Return: 12 percent
The counter has broken out of a long consolidation period. Consolidation typically occurs when the price of an asset trades within a narrow range, indicating a lack of directional movement. A breakout from this consolidation suggests a potential shift in market sentiment and an increased likelihood of a sustained move in the price.
On the weekly chart, the counter has experienced a breakout from a triangle formation, suggesting a potential continuation of the price move in the direction of the breakout.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the upside, Rs 680 is an immediate hurdle; above this, we can expect a move towards Rs 700+. On the downside, a cluster of moving averages at around Rs 600 is a strong demand zone during any correction.
Usha Martin: Buy | LTP: Rs 249 | Stop-Loss: Rs 230 | Target: Rs 285 | Return: 14 percent
The counter is in a classical uptrend and witnessed a multi-year breakout on the longer time frame. It also witnessed a breakout of the uptrend channel formation pattern on the daily chart. On the upside, Rs 260 is an immediate resistance area; above this, we can expect a run-up towards Rs 280+ levels in the near term.
On the downside, the previous breakout level of Rs 230 is an immediate support level. Momentum indicators are positively poised to support the current strength of the trend.
Mishra Dhatu Nigam: Buy | LTP: Rs 241| Stop-Loss: Rs 213 | Target: Rs 280 | Return: 16 percent
The counter has experienced a breakout of a bullish Inverse Head and Shoulder pattern on the daily chart. It has retested its previous breakout level of Rs 213 and started a new leg of the rally towards Rs 280.
The momentum indicator MACD (moving average convergence divergence) is sustaining the current strength, and the RSI (relative strength index) is also poised favourably.
On the upside, Rs 260 is an immediate resistance area; above this, we can expect a run-up towards Rs 280+ levels in the near term. On the downside, Rs 213 is major support for any correction.
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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