After an extended weekend, the Indian market began this week with sharp gains as the Nifty rose more than 2 percent to reclaim 14,800 level on the back of a sharp surge in IT counters along with FMCG, metal and pharma stocks.
On the derivatives front, Put writers were seen adding hefty open interest at 14,600 and 14,700 strikes, while Call writers were seen shifting to higher bands, which point towards strength in the current rally.
Now, 15,000 Call strike holds the maximum open interest of nearly 43 lakh shares, which should act as an immediate strong hurdle for the Nifty.
On the technical front, the Nifty has once again managed to close above its short-term moving averages on the daily interval and witnessed a V-shaped recovery from the lower levels, which point towards the continuation of the rally in prices on short-term charts.
In the upcoming sessions, 14,600-14,500 would act as strong support for the Nifty with bias likely to remain in the favour of bulls as long as 14,500 remains intact.
Here are three buy calls for the next two-three weeks:
The stock began March on a positive note as it reached its 52-week high. However, due to profit-booking it retraced to Rs 920 and took support at its 50-day exponential moving average (DEMA) on the daily interval.
On the technical front, the stock made a double bottom pattern around Rs 920 and once again gained momentum above its short-term moving averages.
Additionally, the stock has also managed to give a breakout above symmetrical triangle pattern on the short-term charts.
Positive divergences on secondary oscillators suggest the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 980-985 levels for the upside target of Rs 1,100.
After taking support at its 100-day exponential moving average on the daily charts at around Rs 700, the stock witnessed a sharp up-move towards Rs 760 in a short span of time.
However, the stock has been consolidating in a broader range of Rs 730-760 since then. It is holding well above its short and long-term moving averages on the daily and weekly intervals.
At the current juncture, the stock has formed a triple bottom pattern on the daily charts and is on the verge of a fresh breakout above the pattern formation.
Traders can accumulate the stock in the range of Rs 755-760 for the upside target of Rs 854.
After testing a 52-week high of Rs 433.95 in February 2021, the stock slipped sharply towards Rs 380 due to profit-booking at higher levels.
However, it took support at its 200-DEMA on the daily interval and saw a V-shaped recovery from there on to regain momentum above Rs 400.
The stock has formed a rectangle pattern on the daily interval as prices were seen consolidating in the Rs 395-405 range after a rally from Rs 380.
The price-volume action around the breakout level suggests an upswing in the prices. Traders can accumulate the stock in the range of Rs 405-409 for the upside target of Rs 446.
(The author is Senior Technical Analyst at SMC Global Securities)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.