On the weekly timeframe, it can be observed that the weekly candle has maintained a higher-high, higher-low formation which suggests improving undertone in the prices.
The index has been sustaining above its 38.2 percent Fibonacci retracement level (17,470) since the last five weeks which shows a good base formation around that levels on the weekly closing basis. This tells that the prices want to move on the higher side.
Momentum indicator RSI (relative strength index) on the daily timeframe is forming a higher top higher bottom pattern reflecting a reversal from current downtrend, however it is still placed below 50 mark indicating lack of positive momentum for the short to medium term.
The resistance for the index are placed at the level of 17,772 (weekly high) and 17,900 (key resistance). The downside support for the index is placed at 17,600 (key support) below that 17,450 (key support).
We feel that if index manages to surpass the level of 17,772, the prices can bounce back & move higher till 17,900 levels, whereas a cut below 17,600, our bounce back view of the index will negate and it can eventually drag the prices lower till the level of 17,450 marks.
Here are three buy calls for next 2-3 weeks:
Usha Martin: Buy | LTP: Rs 210 | Stop-Loss: Rs 197 | Target: Rs 245 | Return: 17 percent
The stock is in a stellar uptrend since April 2020. The recent correction from February 2022 took place decently as the stock did not get into lower low, lower high formation.
The breakout from the symmetrical triangle pattern in December 2022 indicated a continuation of prior uptrend.
Furthermore, the Bollinger bands have opened with higher volumes suggest the rising volatility of the prices for an up move.
On the weekly timeframe, the relative strength index (RSI) has shown a range shift, indicating an increase in the momentum of the upward trend.
Moving forward, we expect prices to rise to the level of Rs 245 with a recommended stop-loss of Rs 197 on a closing basis.
Balrampur Chini Mills: Buy | LTP: Rs 397 | Stop-Loss: Rs 380 | Target: Rs 450 | Return: 13 percent
Balrampur Chini is currently nearing its 3-month's high which tells that the stock already is in strong momentum.
The stock in the latest week broke out of Inverse Head & Shoulder pattern, signaling a beginning of the trend to the upside.
The prices are continuously hovering near upper Bollinger band which points towards the rising volatility of the prices.
RSI on the Weekly timeframe has shown a swing failure which reflects the rising momentum in the prices.
Going ahead we expect the prices to move Higher till the level of Rs 450 where the stop-loss must be Rs 380 on the closing basis.
Mahanagar Gas: Buy | LTP: Rs 997 | Stop-Loss: Rs 950 | Target: Rs 1,120 | Return: 12 percent
Mahanagar Gas saw a positive shift in polarity around Rs 840 level, suggesting a favourable sentiment toward its prices.
In the latest trading week, the stock broke out of an Ascending Triangle pattern, which suggest a potential uptrend. This breakout was confirmed by higher trading volumes.
Currently, the stock is trading above its key moving average of 50 & 100-day EMA (exponential moving average) which confirms the presence of uptrend.
On the weekly timeframe, the RSI has shown a breakout, indicating growing momentum in the stock's prices a rising trend and currently positioned above 50, indicating the presence of momentum.
Going ahead we expect the prices to move higher till the level of Rs 1,120 where the stop-loss must be Rs 950 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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