Bulls are fighting to hold 200-DMA (16,990) after more than 1,000 points cut in Nifty. If the Nifty slips below 200-DMA then 100-DMA of 16,700 will be the next important support level. On the upside, 17,166 is an immediate hurdle then 17,325-17,400-17,600 will be the next resistance levels.
Bank Nifty has slipped below its 50-DMA, however, 38,275-37,940 is a critical demand zone where we can expect a bounce-back while if it slips below the demand zone then we can expect a move towards the 37,000 level.
We are heading into expiry week on a weak note where 17,000 is an immediate Put base then 16,800-16,500 are the next important support levels as per open interest data. Short exposure of FIIs in index future stands at 77 percent while Put Call ratio is at 0.7, both are into oversold zone.
The flows of FIIs will play an important role as FIIs are selling aggressively for the last few days amid strength in the dollar index. The direction of global markets along with currency markets will be other important factors.
Here are three buy calls for next 2-3 weeks:
Tejas Networks: Buy | LTP: Rs 622.25 | Stop-Loss: Rs 560 | Target: Rs 746 | Return: 20 percent
The counter is in a classical uptrend and forming the triangle formation on the daily chart. It has retested its previous breakout Rs 586 level after hitting a fresh all-time high.
On the upside, Rs 680 is an immediate resistance area; above this, we can expect a run-up towards Rs 746 levels in the near term.
On the downside, Rs 560 is major support at any correction.
Liberty Shoes: Buy | LTP: Rs 249.2 | Stop-Loss: Rs 220 | Target: Rs 294 | Return: 18 percent
The counter is in a bullish momentum and forming a Bullish Flag formation to continue this momentum for further upside where the previous swing high around Rs 280 is an immediate level; above this, we can expect Rs 294 level in the near term.
On the downside, the previous breakout level of Rs 235 is an immediate support level while Rs 220 is also a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
PSP Projects: Buy | LTP: Rs 631.35 | Stop-Loss: Rs 580 | Target: Rs 734 | Return: 16 percent
The counter is taking trend-line support on the daily chart and has a strong bullish setup. It has retested its previous breakout Rs 586 level after hitting a fresh all-time high.
On the upside, Rs 700 is an immediate resistance area; above this, we can expect a run-up towards Rs 734 levels in the near term. On the downside, Rs 580 is major support at any correction.
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