Benchmark indices added 1.5 percent last week and broke out of a range to touch a new high, which bodes well for the bulls. Now, 16,000 is merely a formality and if there is no aberration on the global front, we would see the market reaching the millstone in the first half of this week only.
After this, 16,200 is the next level to watch out for. We reiterate that if this assumption has to turn into reality, the banking space needs to contribute.
The moment the banking index crosses the 36,000 mark, we would see Nifty hastening beyond the magical figure of 16,000. The levels of 15,800 and 15,630 are the key supports for Nifty.
One needs to keep in mind that any sustainable move below 15,630 would apply brakes on the ongoing optimism and we may then see some corrective moves in the market in the short term.
Here are two buy calls for the next 2-3 weeks:
Bharti Airtel | LTP: Rs 540.95 | Target price: Rs 562 | Stop loss: Rs 531 | Upside: 4%
Barring January, this stock has done nothing this year and failed to participate in the last few months’ rally.
It first corrected from the record highs in February and then has been hovering around the 200-day simple moving average level of Rs 520.
In the last few months, it seems to have cemented its position around this sacrosanct support and looking at last Friday’s price surge, we can say this stock is about to come out of its slumber.
Price-wise, we can see a triangle pattern breakout with some authority. The volumes were also pretty good, suggesting some renewed buying interest in the stock.
Of late, many stocks from the power sector have been performing phenomenally well, but this stock has been lagging.
Last week, it started to move gradually from its key support zone. It has now entered a multiple resistance zone but the kind of price and volume action we witnessed on the final day of the last week, the breakout looks imminent.
In addition, the momentum oscillator reading is supporting this optimistic outlook.
(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.
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