The Nifty has been maintaining higher top, higher bottom formation on the monthly charts, which shows the long-term bullish trend of the market is intact.
On the weekly timeframe, the Nifty has been moving in a range of 15,430–15,915 for the last few weeks which indicates the momentum of the market has slowed down but still there is no sign of trend reversal.
The index remains above the long-term moving averages of 50-day, 100-day and 200-day simple moving averages (SMA).
The RSI (relative strength index) plotted on all the timeframes has been sustaining above the 60 mark which shows bullish momentum is intact for the medium to long term.
The key support levels to watch for in the short term are 15,430 and 15,145. The key resistance level is 15,915.
If the index sustains above this level, we might see the index head higher towards 15,986 and eventually 16,687.
Here are three buy calls for the next 3-4 weeks:
Tata Steel | LTP: Rs 1,190 | Target price: 1,452 | Stop loss: Rs 1,130 | Upside: 22%
The stock has been maintaining a bullish pattern of higher top, higher bottom on the monthly timeframe since June 2020 which shows a strong positive undertone of the stock for the longer term.
The stock has been giving a consolidation breakout with volumes for the last seven weeks.
On the daily charts, the stock has been continuously sustaining above its 20-day SMA and it is giving ascending triangle pattern breakout which indicates the strong positive sentiment in the stock for the short to medium term as well.
The RSI plotted on the medium term is moving higher, sustaining above 60 level.
The immediate resistance is placed at Rs 1,375, followed by Rs 1,452. The key support levels are Rs 1,130 and Rs 1,050.
One can buy the stock at the current levels for the target of Rs 1,375, followed by Rs 1,452.
HDFC Bank | LTP: Rs 1,521 | Target price: Rs 1,733 | Stop loss: Rs 1,477 | Upside: 14%
The stock has been maintaining its strong bullish mode with the formation of higher top, higher bottom formation on the monthly charts.
On the weekly charts, it has been taking support at 20-week SMA, giving consolidation breakout for the last six weeks which shows the strong positive sentiment of the stock.
Momentum indicator RSI plotted on multiple timeframes is placed above the 60 level and moving higher, indicating that the stock is currently in a strong bullish momentum.
The resistance is placed at Rs 1,641, followed by Rs 1,733. The key level to watch out for on the down is Rs 1,477, followed by Rs 1,353.
One can buy the stock at the current level for the target of Rs 1,641, followed by Rs 1,733.
Dabur India | LTP: Rs 595.65 | Target price: Rs 673 | Stop loss: Rs 560 | Upside: 13%
This stock has been forming a higher top higher bottom pattern on all timeframes which shows a strong positive undertone of the stock for the medium to long term.
On the weekly timeframe, the stock has given an ‘A-B-C’ pattern breakout and also formed a fresh lifetime high at Rs 596, sustaining near higher levels which confirms the positive sentiments of the stock for the
medium-term to long-term.
On the daily charts, the stock has given a cup and handle pattern breakout with volume confirmation which indicates the stock is ready for the next bull run.
The RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher, indicating that the stock is currently in a strong positive momentum.
The immediate resistance is placed at Rs 640, followed by Rs 673. The key support levels are Rs 560 and Rs 520.
One can buy the stock at the current level with a target of Rs 640, followed by Rs 673.
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.
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