The Nifty surged more than 200 points to close above the crucial landmark of 18,000 mark on October 31. On a monthly basis, it ended at an all-time closing high. Previous all-time high on monthly closing basis was registered at 17,759 in August. On a daily basis, the Nifty has closed at the highest level since January 14.
BankNifty has been consolidating in a narrow range for the last five trading sessions and has been underperforming the benchmark Nifty. However, positional trend of BankNifty is much stronger than the Nifty and any time soon, we can expect it to register new all-time high above 41,840.
As per the historical seasonal charts, October month happened to be the bearish month majority of the time, where average monthly return of last 29 years remained negative. However, this year Nifty has managed to close October month with a gain of more than 5 percent, which is far above the average returns of October month in last 29 years. This is encouraging sign for bulls going ahead.
Immediate resistance for Nifty is likely at 18,096, above which Nifty will breakout from the downward sloping trend line, adjoining the October 2021 and September 2022 highs.
Now, meaningful resistance above 18,096 is expected to be at an all-time high of 18,600. Support for the Nifty has shifted higher to 17,800, which happens to be the previous swing high. For BankNifty, next resistance is placed at 42,800, while support is shifted higher to 40,600.
Indicators like RSI (relative strength index), MACD (moving average convergence and divergence) and DMI (directional movement index) all have been showing strong uptrend on daily and weekly time frame for Nifty and BankNifty.
Here are three buy calls for next 2-3 weeks:
United Spirits: Buy | LTP: Rs 896 | Stop-Loss: Rs 802 | Target: Rs 998 | Return: 11 percent
The stock price has been forming higher tops and higher bottoms. It is placed above its 20, 50, 100 and 200 DMA (days moving average). It has broken out from downward sloping trend line on daily and weekly charts.
Price breakout is accompanied by rise in volumes. Stock price has also given “Flag” pattern breakout on the daily chart. Indicators and oscillators have been showing strength in the current uptrend on the daily charts.
Krishna Institute of Medical Sciences: Buy | LTP: Rs 1,485 | Stop-Loss: Rs 1,318 | Target: Rs 1,670 | Return: 12 percent
On week ended September 30, 2022, KIMS broke out from the downward sloping trend line on the weekly chart and also registered new all-time high of Rs 1,574 with significant jump in volumes.
After running correction, the stock has turned north, which can be considered as retracement of the primary bullish trend. Volumes have gone up along with the price rise, while during price falls volume remained less.
Indicators and oscillators like MACD and RSI (relative strength index) have turned bullish on the weekly charts. The stock is placed above all important moving averages, indicating bullish trend on all time frames.
Healthcare Global Enterprises: Buy | LTP: Rs 288 | Stop-Loss: Rs 274 | Target: Rs 328-352 | Return: 14 percent
The stock price broke out from the horizontal channel resistance on the week ended October 7, 2022. Price breakout was accompanied by jump in volumes.
Stock is placed above all important moving averages, which indicates bullish trend on all time frames. Healthcare sector has started outperforming and same is expected to continue.
Bullish Triple Bottom formation is registered at Rs 255 odd levels. Indicators and oscillators have been showing strength on the weekly charts.
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