The week gone by was one of the most remarkable weeks for domestic as well as global markets.
We had a lot of uncertainty around us but fortunately buying emerged right from the first day of the previous week and the moment vote-counting started for the race of becoming the US President, markets started reacting positively.
They took off in the last couple of days to clock whopping gains of over 5 percent for the Nifty and more than 12 percent for the Bank Nifty on a weekly basis.
It was one of the biggest events when markets had a smooth unidirectional move throughout the week and fortunately, in the northward direction.
Technically, we can see a ‘Bullish Flag’ breakout happening along with a ‘Breakaway Gap’ on a daily chart.
It is considered a strong development and hence, we are likely to move beyond previous highs soon.
So, 12,430.50 is the first level to watch and post then, the theoretical target of the ‘Flag’ pattern is around 12,700. Last Thursday’s gap area of 12,027.20 – 11,929.65 should act as strong support.
This rally can be considered a healthy one because almost all sectors have contributed to it and financial space has dominated it along with the late participation from the broader market.
The much-awaited breakout in the Midcap index has already been confirmed which generally happens when the market feels that the uncertainty is behind us and we are likely to witness some strong rally in the near future.
We expect some encouraging moves to come in the broader market.
Here are two buy calls for the next 2-3 weeks:
Venky's (India) | LTP: Rs 1,585 | Target price: Rs 1,730 | Stop loss: Rs 1,524 | Upside: 9%
The mid-cap universe is back in flavor and this stock is one of the high beta stocks which has confirmed a decisive breakout from the multiple points trendline around Rs 1,570 on a closing basis.
If we take a glance at the higher time frame, we can see a flag pattern on the weekly chart.
The stock has surpassed 89-day EMA convincingly on the weekly chart for the first time after November 2018.
Looking at rising volumes in this upward move, we expect a decent rally in days to come.
Deccan Cements | LTP: Rs 340.25 | Target price: Rs 380 | Stop loss: Rs 324 | Upside: 12%
The entire cement space is on a roll for the last couple of months. All larger names have given a mesmerizing move in recent times and now some of the smaller stocks are gaining traction.
Deccan Cements confirmed a good price-volume breakout on the daily chart last Friday.
The extraordinary volume activity, that we have witnessed in the up-move in the last few months, indicates some bigger moves to unfold and this probable rally seems to have begun now.
(The author is Chief Technical & Derivatives Analyst at Angel Broking)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.