On the monthly chart, the Nifty formed an Outside bar candle which indicated increase in the volatility of the prices.
On the weekly chart, prices have given a confirmation of Hammer pattern by sustaining above prior week high at the same time taking support from the 20-week SMA (simple moving average - 16,855).
Prices on daily time frame are maintaining higher top, higher bottom pattern while sustaining above 5-day high.
RSI (relative strength index) on the daily timeframe is trending higher which reflects the rising momentum in the index.
Looking at the overall chart pattern, we feel that the trend of the Nifty is on the positive side and index may attempt to go higher till the level of 17,500 (weekly high) followed by 17,700 (key resistance). The bullish view would be negated if we see prices sustaining below the level of 16,747.
Here are three buy calls for next 2-3 weeks:
Tata Chemicals: Buy | LTP: Rs 1,147.85 | Stop-Loss: Rs 1,000 | Target: Rs 1,360 | Return: 18 percent
The correction in Tata Chemicals post October 2021 was lethargic to what the benchmark index Nifty had done.
Post the breakout of Triple Bottom pattern in first week of August 2022, prices have retested the neckline and have triggered a start for an up move while sustaining above the prior week high which is a Hammer candlestick pattern.
Prices are above 13 and 50 days EMA (exponential moving average) which have acted as a variable support for the prices, confirming uptrend.
RSI on Daily as well as on weekly timeframe is above 50 mark indicating rising momentum in the stock.
Going ahead, we expect the prices to go higher till the level of Rs 1,360 where stop-loss must be Rs 1,000 strictly on the closing basis.
Praj Industries: Buy | LTP: Rs 443.65 | Stop-Loss: Rs 400 | Target: Rs 550 | Return: 24 percent
Praj Industries is currently trading nears its record high which tells that the stock already is in a good momentum.
The stock in the latest trading week have given a breakout from the Symmetrical Triangle pattern, indicating continuation of prior uptrend.
Prices in the latest trading session have breached the Upper Bollinger Band with High volumes, pointing towards the rising volatility of the prices.
RSI on the weekly timeframe is witnessing range shift to the upside which reflects the rising volatility on the upside.
Going ahead we expect the prices to go higher till the level of Rs 550 where the stop-loss must be Rs 400 on the closing basis.
KPIT Technologies: Buy | LTP: Rs 664.10 | Stop-Loss: Rs 577 | Target: Rs 800 | Return: 20 percent
KPIT Technologies has breached the swing high of Rs 635 level (April 2022) while negating the Lower Low, Lower High formation.
The stock after giving a breakout from the rounding bottom pattern in September 2022 indicated beginning of the trend on the upside.
Prices on the daily timeframe are hovering around the Upper Bollinger band which states the rising volatility in the prices.
RSI on Daily as well as on weekly timeframe is above 50 mark indicating rising momentum in the stock.
Going ahead we expect the prices to go higher till the level of Rs 800 where the stop-loss must be Rs 577 on the closing basis.
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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