The Nifty is moving in an up-sloping channel formation and is approaching its fresh all-time high. However, 18,900-19,000 may act as a profit-booking zone for investors.
The overall structure is bullish, where the 20-DMA (daily moving average) of around 18,640 will act as an immediate support level and below which 18,450 will be a major support level.
Bank Nifty respected its 50-DMA (43,359), but it needs to sustain above its 20-DMA of 44,000 to gain strength. Above 20-DMA, 44,400-44,500 is the next resistance zone. However, if it slips below 43,300, then 42,700 will be the next support level.
Here are three buy calls for next 2-3 weeks:
SJS Enterprises: Buy | LTP: Rs 570 | Stop-Loss: Rs 515 | Target: Rs 684 | Return: 20 percent
The counter has broken above a horizontal resistance level that had been in place for several months. The breakout was accompanied by strong volume, which added confirmation to the validity of the breakout.
The counter has surpassed its IPO listing high of Rs 551. This milestone indicates a potential shift in sentiment and market perception towards the counter after 19 months of long consolidation.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
On the upside, Rs 600 is an immediate resistance area; above this, we can expect a run-up towards Rs 680+ levels in the near term. On the downside, Rs 515 is major support in any correction.
IRCON International: Buy | LTP: Rs 87 | Stop-Loss: Rs 80 | Target: Rs 100 | Return: 15 percent
The counter has been experiencing a rangebound session for the past month. On the daily chart, it is forming a Triangle pattern, while on the weekly chart, it is forming a Flag pattern. These patterns suggest a potential continuation of the previous trend.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
It has a psychological resistance level of Rs 90. If the price manages to break above the Rs 90 resistance level with conviction, it suggests increased bullish momentum and the potential for further upside.
In the near term, this could lead to a target price of Rs 100+ or even higher. On the downside, if there is a correction, the major support level is identified at Rs 80.
Poly Medicure: Buy | LTP: Rs 1,149 | Stop-Loss: Rs 1,050 | Target: Rs 1,344 | Return: 17 percent
The counter has given multiple breakouts on the longer-term chart. These include a symmetrical triangle, long consolidation, and an Inverse Head and Shoulders formation with their single-day all-time high volume. It retested its breakout level at Rs 1,094 and started a new leg of the rally but faces resistance at Rs 1,165 levels.
The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the upside, Rs 1,165 is an important psychological level; above this, we can expect a move towards Rs 1,340+. On the downside, a cluster of moving averages at around Rs 1,050 is a strong demand zone during any correction.
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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