Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The recent low of 16,828.35 in the Nifty50 aligns closely with the lows observed in September and October 2022, thereby making it a significant level of support to monitor going forward.
On the weekly timeframe, the Nifty has exhibited a notable price action development as the index has not close below the low of the prior week for 9 weeks. Specifically, the index has maintained the formation of higher highs and higher lows.
This upward momentum was observed after a bounce from the 50 percent Fibonacci retracement level, which was calculated based on the prior advance from 15,183.40 in June 2022 to the high of 18,887.60 in December 2022.
The Index has strong support at 18,000 (key support) followed by 17800 (key support). While on the higher side the mark of 18,468 (swing high) followed by 18,887 (life high) are crucial levels to watch out for.
The overall trend looks positive for the Nifty Index. We expect the prices to move higher to 18,473 followed by the 18,887 level.
Here are three buy calls for next 2-3 weeks:
Finolex Industries: Buy | LTP: Rs 187.35 | Stop-Loss: Rs 175 | Target: Rs 235 | Return: 25 percent
The stock has shown a change in the polarity of its prices around the level of Rs 163 which illustrates a positive undertone of the prices.
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 RSI (relative strength index) on the weekly timeframe has shown a range shift which reflects the rising momentum behind the prices.
We expect the prices to move higher to Rs 235 level where the stop-loss must be Rs 175 strictly on the closing basis.
AU Small Finance Bank: Buy | LTP: Rs 747.60 | Stop-Loss: Rs 700 | Target: Rs 886 | Return: 18 percent
The stock price is currently trading at its life-high which tells that the stock already is in strong momentum. The stock 3 weeks ago retested the Descending Triangle pattern and has shown a bounce to the upside. The breakout was witnessed in early April 2023.
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 886 where the stop-loss must be Rs 700 on a closing basis.
Craftsman Automation: Buy | LTP: Rs 3,570 | Stop-Loss: Rs 3,400 | Target: Rs 4,230 | Return: 18 percent
The stock price of Craftsman has maintained the formation of the Higher high & Higher Low since April 2021. In the first week of May 2023, the stock gave a breakout of the Descending Triangle 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 has shown a Bullish reversal reflecting the rising momentum behind the prices.
We expect the prices to move higher till the level of Rs 4,230, where the stop-loss must be Rs 3,400 on a closing basis.
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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