Santosh Meena, Head of Research at Swastika Investmart
The Nifty50 is witnessing an astute recovery from 15,180 levels followed by a major downfall of more than 1,600 points from 16,800 levels. If we look at the derivative data, the long exposure of FIIs in the Index future hiked to 15 percent from their multi-year low of 11 percent, whereas the Put-Call ratio is also in an oversold zone of 0.81.
Technically, 15,800-15,850 is a critical susceptible zone; above this, we can expect the level of 16,000 in the near term while on the downside, if the Nifty slips below 15,400 level, then 15,180 is the next support level.
The derivative data represents a slightly oversold situation that may help in a short-covering bounce.
Bank Nifty has crossed its psychological level of 33,000 in Tuesday's trading session, however, 33,800 is an immediate and critical supply level; above this, 34,000 will be the next resistance level.
On the downside, 33,000 is the major demand level; below this 32,250-32,000 will be the next support levels.
Here are three buy calls for next 2-3 weeks:
Elecon Engineering: Buy | LTP: Rs 259.30 | Stop-Loss: Rs 224 | Target: Rs 294 | Return: 13 percent
There is a classical bullish setup as the counter is forming a Bullish Flag formation. It is trading above its all-important moving averages. Momentum indicators are positively poised to support the current strength of the trend.
On the upside, Rs 284-294 are the immediate target levels while 50-DMA (day moving average) of Rs 230 is an immediate support level and below this Rs 224 is the next demand level.
PVR: Buy | LTP: Rs 1,782.35 | Stop-Loss: Rs 1,672 | Target: Rs 2,000 | Return: 12 percent
The counter is witnessing a breakout of triangle pattern formation to resume its classical uptrend. It is respecting its 200-DMA which is currently placed at the Rs 1,640 level.
Most of the momentum indicators are positively poised and indicate further rally in this counter.
J Kumar Infraprojects: Buy | LTP: Rs 279.5 | Stop-Loss: Rs 240 | Target: Rs 336 | Return: 20 percent
The counter has a strong bullish setup where it witnessed a breakout of Descending triangle breakout on the longer timeframe. It has retested its previous breakout Rs 240 level after hitting a fresh 52-week high.
On the upside, Rs 300 is an immediate resistance area; above this, we can expect a run-up towards Rs 336 levels in the near term. On the downside, Rs 240 is major support at any correction.
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