Nifty tested 16,350 level in intraday trade on August 10 on a fresh round of buying in IT and private bank stocks.
TCS, Infosys, Tech Mahindra, Kotak Mahindra Bank, HDFC Bank and Axis Bank have added smart gains in the last few sessions.
However, metal along with PSU banks remained low as profit booking near record highs capped upside.
On the derivatives front, Put writers added hefty open interest at 16,200 strike and hold maximum contracts there.
Call writers were seen adding open interests at 16,300, 16,400 and 16,500 strikes.
For the coming sessions, we expect the bias to remain in favour of bulls as long as Nifty remains above 16,000.
The banking index is facing a strong hurdle in the range of 36,200-36,400, above which, the index could continue its journey towards 37,000.
Here are three buy calls for the next 3-4 weeks:
TCS | LTP: Rs 3,330.50 | Target price: Rs 3,630 | Stop loss: Rs 3,150 | Upside: 9%
After hitting its 52-week high in June, this stock retraced towards its 100-day exponential moving average on the daily charts and took support around Rs 3,150.
From there, recovery has been witnessed as the stock has once again regained momentum above Rs 3,300 level.
It has formed a rounding bottom pattern and can be seen trading in bullish territory with the formation of higher highs.
Positive divergences on secondary oscillators suggest the next up-move in the prices. Traders can accumulate the stock in the range of Rs 3,325-Rs 3,335.
Mahindra & Mahindra (M&M) | LTP: Rs 785.65 | Target price: Rs 864 | Stop loss: Rs 725 | Upside: 10%
Since April 2021, this stock has been fluctuating in a broader range of Rs 720-Rs 820. It, however, has been firmly holding above its 200-day exponential moving average on the daily charts.
The stock has been seen trading in a downward sloping channel with the formation of a lower bottom pattern on the short-term charts.
However, this week, it has managed to give a breakout above the falling trendline of the channel.
It has also formed an inverted head and shoulder pattern on the daily interval. The breakout above the neckline of the pattern formation can also be seen on charts which points towards the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 777-Rs 787.
Cummins India | LTP: Rs 947.90 | Target price: Rs 1,055 | Stop loss: Rs 845 | Upside: 11%
This stock can be seen consolidating in the broader range of Rs 780-Rs 930 for the last five months.
This week, it has given a breakout after a prolonged consolidation and also tested its 52-week high.
Rising volumes along with price action suggest that the rally may continue in the upcoming sessions as well.
Additionally, the stock has also given a fresh breakout on the broader time interval charts as well with prices holding above their all-important moving averages.
Traders can accumulate the stock in the range of Rs 925-Rs 945.
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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