Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The recent low of 16,828 in the Nifty aligns closely with the lows observed in September and October 2022, thereby making it a significant level of support to monitor going forward. While the rally from 17,207.25 (March 2023) the index has never seen any close below the low of the prior week which illustrates the positive undertone of the prices.
On the weekly timeframe, the Nifty has formed an Inside Bar Candle which reflects the decreasing volatility of the prices.
The index has strong support at 18,050 (key support) followed by 17,800 (key support), while on the higher side, 18,458 (prior week high) followed by 18,887 (life high) are crucial levels to watch out for.
The overall trend looks positive for index, we expect the prices to move higher to 18,458 followed by 18,887 levels.
Here are three buy calls for the next 2-3 weeks:
Kajaria Ceramics: Buy | LTP: Rs 1,251 | Stop-Loss: Rs 1,160 | Target: Rs 1,500 | Return: 20 percent
The stock can be found trading above key support of Rs 1,000 level very prudently, while the stock has also found support at every dip which illustrates the presence of positive momentum.
In the latest week, the stock has given a breakout of Descending Triangle Pattern in early May 2023, indicating a continuation of the trend to the upside.
On the daily timeframe, the stock is above its key moving averages of 50, 100, and 200-day EMA (exponential moving average), confirming the presence of an uptrend.
The momentum indicator RSI (relative strength index) on the weekly timeframe has shown a breakout too reflecting the presence of positive momentum.
We expect the prices to move higher to Rs 1,500 level where the stop-loss must be Rs 1,160 strictly on the closing basis.
Transport Corporation of India: Buy | LTP: Rs 701.50 | Stop-Loss: Rs 636 | Target: Rs 812 | Return: 16 percent
The correction in the stock has taken place gracefully as post correction from November 2021 trend did not get into the formation of a higher high higher low which illustrates the presence of positive momentum.
The stock currently retested the Symmetrical Triangle Pattern and has shown a bounce to the upside. The breakout was witnessed 3 weeks ago.
Additionally, the RSI on the weekly timeframe has shown a breakout reflecting the rising momentum behind the prices.
Going ahead we expect the prices to move higher to the level of Rs 812, where the stop-loss must be Rs 636 on the closing basis.
Exide Industries: Buy | LTP: Rs 208.20 | Stop-Loss: Rs 198 | Target: Rs 235 | Return: 13 percent
The stock price is currently trading at a 52-week high which tells that the stock already is in strong momentum.
In the Mid of May 2023, the stock gave a breakout of the Cup & Handle pattern, indicating a continuation of the prior uptrend.
The stock has also sustained well above the 18-week Exponential moving average (EMA), which has provided variable support.
Additionally, the RSI on the weekly timeframe is rising and has sustained well above the 50 mark reflecting the presence of positive momentum.
We expect the prices to move higher till the level of Rs 235, where the stop-loss must be Rs 198 on a closing basis.
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