Due to a last-hour decline, the market closed nearly flat, with the Nifty below 18,300 on May 9, although it continued with the bullish momentum and managed to cross resistance at 18,250.
On the upside, 18,440 is an immediate target level, while 18,600 is the next hurdle. On the downside, 18,200 is an immediate support level, below which we can expect some profit booking, and 18,000–17,950 stands at a critical support zone.
Bank Nifty is struggling near the 43,500 level after a stellar rally. A strong demand zone is seen at 43,000–42,600 and, only below this, can we expect any weakness. On the upside, 44,000–44,150 is the next resistance zone.
Here are three buy calls for next 2-3 weeks:
Sula Vineyards: Buy | LTP: Rs 433 | Stop-Loss: Rs 400 | Target: Rs 484 | Return: 12 percent
The counter is in a classical uptrend and now it is breaking out of ascending triangle formation to resume its uptrend. The breakout coincides with rising volume and it managed to sustain above breakout level despite weakness in the broader market.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, a cluster of moving averages around the Rs 400 level will act as a strong support level.
Tube Investments of India: Buy | LTP: Rs 2,721 | Stop-Loss: Rs 2,450 | Target: Rs 3,124 | Return: 15 percent
The counter has witnessed a breakout of a downward-sloping channel with huge volume; it is also coming out of a symmetrical triangle pattern formation on the daily chart. The overall structure is very lucrative as it trades above its all-important moving averages.
On the upside, Rs 2850, is an immediate resistance area; above this, we can expect a run-up towards Rs 3,100+ levels in the near term. On the downside, Rs. Rs 2,450 is major support for any correction.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
Vindhya Telelinks: Buy | LTP: Rs 1,947 | Stop-Loss: Rs 1,790 | Target: Rs 2,234 | Return: 15 percent
The counter is in a classical uptrend, and it has witnessed a breakout of an ascending triangle formation to resume its uptrend. The breakout coincides with rising volume, and it manages to sustain above the breakout level.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, the Rs 1,800 level will act as a strong support level, while on the upside, Rs 2,000 is a psychological hurdle; above this, Rs 2,200 will be the next target level in the near term.
It is respecting its all-important moving averages beautifully, which is a classic sign of trend strength.
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