India VIX closed at 12.12 lower by 1.7 percent for the day. VIX has been in a downward trajectory for the last couple of months which has been supporting the market.
Nifty continued its surge to hit a record high of 12,268 and finally settled at 12,260, up by 0.31 percent for the day.
After consolidating below 12,100 odd levels for six weeks, Nifty has seen a breakout on the upside at all-time highs. On the downside, support is seen at 12,100 and then at 11,985.
India VIX closed at 12.12 lower by 1.7 percent for the day. VIX has been in a downward trajectory for the last couple of months which has been supporting the market. If it sustains below 14 levels, it will help the market tread higher.
Here are three buy calls for the next three-four weeks:
PVR | Buy | LTP: Rs 1,832.60 | Target price: Rs 2,070 | Stop loss: Rs 1,740 | Upside: 13%
The stock had seen a sharp fall from Rs 1,800 in July to touch the low of Rs 1,348 in August this year. Subsequently, the stock rebounded and went on to hit a new all-time high of Rs 1,898 in September. Since then it has corrected down to Rs 1,695 odd levels and has been range-bound.
The stock has retraced almost 38.2 percent Fibonacci retracement of the rally which comes at Rs 1,686. Price has taken support at 89-day exponential moving average and trading above it for the last 11 weeks, indicating as good support zone for the stock. Now, the stock is showing signs of resumption of uptrend after the recent up move from lower levels.
RSI has given positive crossover with its average on the weekly chart. MACD has given a positive crossover with its average and moved above the equilibrium level of zero on the daily chart.
Mahanagar Gas | Buy | LTP: Rs 1,062 | Target price: Rs 1,200 | Stop loss: Rs 1,030 | Upside: 13%
The stock touched an all-time high of Rs 1,378 in November 2017 and then corrected down to Rs 755 odd levels. Over the last couple of years, the stock has seen consolidation between Rs 1,070 and Rs 755 odd levels to form a major double bottom pattern on the weekly chart.
The rally from the lower end of the range has been on long body bullish candles with good volumes, indicating buying participation in the stock. Price corrections have taken support at 21-day exponential moving average and recent dip has taken support at the average.
The stock is currently trading around the breakout level. Price has given a breakout on the upside from the Bollinger Band with the expansion of bands, indicating the start of a fresh trend in the direction of breakout on the daily chart.
Coromandel International | Buy | LTP: Rs 509.90 | Target price: Rs 600 | Stop loss: Rs 490 | Upside: 18%
The stock hit an all-time high of Rs 587 in January 2018 and then declined to touch the low of Rs 340 In October 2018.
Subsequent bounce back faced resistance at Rs 517 and corrected down to Rs 340 in August this year. Since then the stock has seen a rebound to current levels, forming a double bottom pattern on weekly chart and price currently at breakout level.
The rally from the low has been moving along 21-exponential moving average i.e. dips finding support at average and trending higher.
MACD has given positive crossover with its average above equilibrium level of zero on the monthly chart, indicating long-term trend change to upside.
(The author is Head of Technical and Derivatives, Sanctum Wealth Management)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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.