Nifty has been consolidating in the range of 400 odd points for the last seven trading sessions. On the downside, 17,000 has been acting as a support while 17,400 has been acting as a resistance. On March 28, Nifty found support at the lower band of the consolidation, and closed on a strong wicket. At present 20 and 50 day EMAs (exponential moving averages) are placed at 16,982 and 17,083 respectively and Nifty has managed to close above that.
A level above 20, 50, 100 and 200 day EMAs indicates bullish trend on all timeframes for Nifty. Positional support for Nifty is seen at 16,800 levels and Nifty trading longs can be held long with that stop-loss.
Indicators and oscillators like DMI (directional movement index), MACD (moving average convergence divergence) and RSI (relative strength index) have also been showing strength in the current move.
After running correction, BankNifty found support at 35,016 which happens to be 38.2 percent. Fibonacci retracement of the entire upswing is seen from 32,155 (low made on March 8) to 36,827 (high made on March 23). BankNifty closed near day's high with a bullish 'hammer' candlestick pattern on the daily charts.
To conclude, the trend of the market is bullish and chances of moving up from the current consolidation look much higher than moving down. Therefore, we recommend to remain bullish on markets with 17,640 and 17,774 targets. However, longs should be protected with 16,800 stop-loss in Nifty.
Here are three buy calls for next 2-3 weeks:
Gujarat State Fertilizers & Chemicals: Buy | LTP: Rs 154 | Stop-Loss: Rs 145 | Target: Rs 179 | Return: 16 percent
The stock has registered a fresh all-time high above Rs 152 by rising more than six percent with jump in volumes. The fertilisers and chemical sector has been outperforming over the last couple of months.
The stock has also broken out from consolidation which held for the last five trading sessions. Indicators and oscillators like DMI, RSI and MACD have been showing strength on the medium term charts. Stock is placed above all important moving averages.
Brigade Enterprises: Buy | LTP: Rs 508 | Stop-Loss: Rs 460 | Target: Rs 580 | Return: 14 percent
On March 17, the stock price broke out from the narrow consolidation of the last five months. Price breakout is accompanied by jump in volumes. Stock remained resilient when overall market was passing through bearish trend.
In the entire realty sector, technical setup of Brigade looks the strongest. The stock is placed above all important moving averages and has been correcting for the last few sessions, which can be considered as throwback to breakout levels.
Technical setup of Nifty Realty Index is bullish on short to medium term charts.
Schaeffler India: Buy | LTP: Rs 1,863 | Stop-Loss: Rs 1,650 | Target: Rs 2,120 | Return: 14 percent
Symmetrical triangle breakout was seen on daily chart. Price breakout is accompanied by jump in volumes. Stock has been finding support on its 50 day EMA.
The stock is on the verge of breaking out from last three months' price consolidation. Indicators and oscillators like RSI, DMI and MACD have been showing strength in the current upmove.
The stock is placed above all important moving average parameters, indicating uptrend on all timeframes.
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