The Nifty sees some profit-booking from its 100-DMA (daily moving average) and 50 percent retracement of its previous fall. However, the cluster of 200 and 50-DMA at 17,570–17,500 is an immediate demand zone, while 17,400 is a major support level to buy the dip.
On the upside, if the Nifty manages to take out the 17,870 level, then we can expect a rally towards 18,100–18,200 zone.
Bank Nifty is outperforming, however, and 42,600–43,000 is a critical supply zone; above this, we can expect a rally towards 43,600. On the downside, the 100-DMA around 41,700 is an immediate support level, while 41,270–41070 is a critical support zone.
Here are three buy calls for next 2-3 weeks:
Cyient: Buy | LTP: Rs 1,108 | Stop-Loss: Rs 1,030 | Target: Rs 1,264 | Return: 14 percent
The counter is in a classical uptrend and is forming higher highs and higher lows on the daily chart. The structure of the counter is lucrative, as it is trading above each of its significant moving averages.
On the longer timeframe, it also witnessed the breakout of a rising channel formation with strong volume.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the upside, if the stock crosses its immediate hurdle of Rs 1,140, we can expect a move towards Rs 1,250+ levels. On the downside, Rs 1,030 will act as a strong demand zone.
IRCON International: Buy | LTP: Rs 61 | Stop-Loss: Rs 56.50 | Target: Rs 70 | Return: 14 percent
The structure of the counter become very lucrative as it has witnessed a breakout of Triangle formation on the daily chart with strong volume. It is also forming higher highs and higher lows. A cluster of moving averages formed a base at Rs 55-56 levels, making the counter lucrative on a short to long-term basis.
On the higher side, Rs 64 acts as the susceptible level; above this, we can expect a long move towards Rs 70 in the shorter to longer timeframe, whereas on the lower side, Rs 56.50 serves as important support during any correction.
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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