Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the weekly timeframe, the Nifty has exhibited a notable price action development as the index has not closed below the low of prior week for 8 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.
On the daily time frame, a classical breakout of the Inverse Head & Shoulder pattern can be witnessed which indicates beginning of the trend towards uptrend.
The Index has a strong support at 18,100 (key support) followed by 17,800 (key support). While on the higher side the mark of 18,473 (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 till 18,473 followed by 18,887 level.
Here are three buy calls for next 2-3 weeks:
Hindustan Aeronautics: Buy | LTP: Rs 3,018.35 | Stop-Loss: Rs 2,850 | Target: Rs 3,400 | Return: 13 percent
The Stock price is currently nearing at its life-high which tells that the stock already is in strong momentum. In the latest week, the stock has given a breakout of Cup & Handle Pattern, 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 daily timeframe has shown a range shift which reflects the rising momentum behind the prices.
We expect the prices to move higher till Rs 3,400 level where the stop-loss must be Rs 2,850 strictly on the closing basis.
Cera Sanitaryware: Buy | LTP: Rs 6,818 | Stop-Loss: Rs 6,475 | Target: Rs 7,600 | Return: 11 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 neckline of the Cup & Handle pattern and have shown a bounce to the upside. The breakout was witnessed in late February 2023.
On the weekly timeframe, the stock has sustained well above the 18-week EMA which as acted a strong variable support for the prices earlier in uptrend.
Additionally, the RSI on the weekly timeframe is rising and have sustained well above 50 mark reflect presence of strong momentum.
Going ahead we expect the prices to move higher till the level of Rs 7,600 where the stop-loss must be Rs 6,475 on the closing basis.
Suprajit Engineering: Buy | LTP: Rs 403.15 | Stop-Loss: Rs 385 | Target: Rs 450 | Return: 11.5 percent
The stock price now for the first time has got into formation of the Higher high & Higher Low post the Rally from January 2022. This illustrates the positive undertone of the prices.
In early February 2023, the stock gave a breakout of the Symmetrical Triangle pattern, indicating 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 is rising and have sustained well above 50 mark reflect presence of strong momentum. We expect the prices to move higher till the level of Rs 450, where the stop-loss must be Rs 385 on the closing basis.
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