The Nifty index is striving to maintain its position around the 50-day moving average (DMA) at approximately 19,250. A breach below this level would subsequently bring the support levels of 19,191 and 18,888 into focus.
Conversely, on the upside, the immediate challenge lies at the 10-DMA of 19,460. To conclude the ongoing correction, the Nifty must surpass the 20-DMA at 19,550.
The Bank Nifty has been underperforming and is presently trading around the 100-DMA level of 43,600. Should it fall below this mark, the subsequent support level to watch would be at 43,300.
A breach of this level could potentially lead to a test of the 200-DMA around 42,800. To shift towards a more bullish trajectory, the Bank Nifty needs to surpass the resistance level at 44,500.
Here are three buy calls for next 2-3 weeks:
Rainbow Children's Medicare: Buy | LTP: Rs 1,168 | Stop-Loss: Rs 1,060 | Target: Rs 1,334 | Return: 14 percent
The counter experienced a breakout from a triangular pattern on the daily timeframe, accompanied by substantial trading volume. Following this breakout, there has been a retest of the recently breached level around Rs 1,010, aligned with the 50-day moving average. This has served as a catalyst for a fresh upward movement, propelling the counter's price towards the Rs 1,300 mark.
The counter's holistic framework is indeed commendable, as it maintains its position above key moving averages, further enhancing its positive outlook.
On the higher side, Rs 1,200 acts as susceptible levels; above this, we can expect a long move towards Rs 1,300+ in the shorter to longer timeframe, while on the lower side, Rs 1,060 serves as an important support during any correction.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
SJVN: Buy | LTP: Rs 59 | Stop-Loss: Rs 55 | Target: Rs 66 | Return: 12 percent
The counter has witnessed a breakout of a triangle formation on the daily chart with a huge volume. It has retested its last breakout level at 20-DMA around Rs 52.50 levels and started a new leg of rally towards Rs 62. The overall structure of the counter looks impressive as it is trading above all the important moving averages.
On the higher side, Rs 60 acts as susceptible levels; above this, we can expect a long move toward Rs 65+ in the shorter to a longer timeframe, while on the lower side, Rs 55 serves as an important support during any correction.
The momentum indicator RSI (relative strength index) is also positively poised.
Gujarat Mineral Development Corporation: Buy | LTP: Rs 196 | Stop-Loss: Rs 186 | Target: Rs 224 | Return: 14 percent
GMDC is continuing its higher highs and higher lows formation and has given a breakout of a triangle formation with strong volume. It has broken the multi-month breakout above the Rs 190 levels. The structure of the counter has become lucrative for long-term investors as it is trading above all its important moving averages.
Both the RSI and MACD indicators are supportive of the current strength in the stock's momentum.
On the upside, Rs 200 is an important psychological level; above this, we can expect a move towards Rs 220+. On the downside, a cluster of moving averages at around Rs 190 is a strong demand zone during 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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