Nifty snapped its five-day losing streak on February 23. However, Bank Nifty closed in the negative territory for the sixth consecutive session as selling pressure in HDFC twins and Axis Bank capped the upside moves.
On the technical front, however, both Nifty and Bank Nifty managed to close above their key support levels of 14,700 and 35,000, respectively.
On the derivatives front, Put writers were seen adding hefty open interest at 14,700 strike which should act as immediate support for Nifty while Call writers are pretty much active at 14,800 and 15,000 strikes.
As we are approaching the monthly expiry of February F&O contracts, the market may remain volatile ahead of rollovers.
On the higher side, the bias would once again turn bullish if Nifty manages to give a decisive move above 15,000 once again in the upcoming sessions.
On the flip side, a slide below 14,700 would bring bears on the front foot once again which could drag Nifty towards 14,500 level.
Here are three buy calls for the next 3-4 weeks:
SAIL | LTP: Rs 71.10 | Target price: Rs 83 | Stop loss: Rs 62 | Upside: 17%
After testing a 52-week high of Rs 80.30 in January 2021, the stock witnessed profit-booking at higher levels and slipped towards Rs 55 in a short span of time.
However, it took support at its 100-day exponential moving average on the daily interval and made a V-shaped recovery to once again reclaim momentum above its short-term moving averages.
At the current juncture, the stock can be seen consolidating in the range of Rs 60 to Rs 70 from the last two weeks which has formed a rectangle pattern on technical charts.
The pattern is generally traded as a continuation pattern. Traders can accumulate the stock in the range of Rs 70- Rs 71 for the upside target of Rs 83.
AU Small Finance Bank | LTP: Rs 1,120.65 | Target price: Rs 1,288 | Stop loss: Rs 1,000 | Upside: 15%
This stock has been consistently moving higher on charts with the formation of higher bottoms.
Besides, it is holding well above its short and long-term moving averages on the daily and weekly charts as well.
At the current juncture, the stock is all set for a fresh breakout above its recent high of Rs 1,120 with the formation of inverted head and shoulder pattern on the short-term charts.
Traders can accumulate the stock in the range of Rs 1,100-Rs 1,120 for the upside target of Rs 1,288.
GNFC | LTP: Rs 254 | Target price: Rs 285 | Stop loss: Rs 230 | Upside: 12%
After testing a 52-week high of Rs 254.75 in February 2021, this stock slipped back sharply towards Rs 200 due to profit-booking at higher levels.
However, it took support at its 200-day exponential moving average on the daily interval and made a V-shaped recovery and reclaimed Rs 250 level.
At the current juncture, the stock can be seen trading well above its short and long-term moving averages with the formation of higher highs.
The positive divergences on secondary oscillators along with price action above symmetrical triangle breakout suggest the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 250-Rs 253 for the upside target of Rs 285 with a stop loss below Rs 230.
(The author is a 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 that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.