Volatile trade ruled the market through the week ended March 22 with a slight positive note of 0.3 percent rise in Nifty at the time of settling down a tad below 22,100 levels.
There has been a strong show of tug-of-war between the counterparties to exhibit their presence, though no conducive settlement was seen, portraying tentativeness in the market. The Nifty still hovers within the 20-day and 50-day exponential moving average (DEMA) on the daily chart, indicating uncertainty. However, the recent low signifies a lower low formation on the daily timeframe, and a further correction below the same could indicate the inception of a bearish trend in the markets.
For now, 21,900-21,850 is likely to cushion any short-term blip, with major focus on a swing low of 21,700, breaching which disruption on chart structure could be seen in the current truncated week. On the higher end, 22,200-22,250 is expected to act as an intermediate hurdle, and an authoritative closure above the same could only bring some mojo back into the market.
As we head for a truncated week with just three trading sessions and monthly expiry, it would be crucial to track global developments to have an immediate effect on the markets. Also, a spike in volatility is anticipated, keeping expiry in view. Hence, it is advisable to maintain caution and stay fussy with stock selection for an outperformance in the market.
Here are three buy calls for the short term:
Apollo Hospitals Enterprise: Buy | LTP: Rs 6,375.90 | Stop-Loss: Rs 6,100 | Target: Rs 6,650-6,770 | Return: 6 percent
Apollo Hospitals has witnessed a decent correction of over 13 percent in the recent period from the lifetime high zone, retracting towards the neckline of the breakout on the weekly time frame. After a couple of weeks of consolidation, the stock has regained strength and reverted towards the primary trend on the back of notable volumes, indicating an opportunity to go long.
The technical indicators are very much in line with the bullish development, adding a strong undertone to the counter. Hence, we recommend buying Apollo Hospitals around Rs 6,370-6,350, with a stop-loss of Rs 6,100 and target of Rs 6,650-6,770.
Eicher Motors: Buy | LTP: Rs 3,988.40 | Stop-Loss: Rs 3,800 | Target: Rs 4,180-4,200 | Return: 5 percent
Eicher Motors witnessed a strong spurt in price-volume in the last trading week from the cluster of its significant EMAs and made a strong runaway gap. Also, on the daily time frame, the counter has witnessed a sloping trendline breakout and made a strong weekly closure above its immediate swing high.
From a technical standpoint, the 14-period RSI (relative strength index) and MACD (moving average convergence divergence) both signal a positive crossover, suggesting the counter looks poised to reclaim its lifetime high zone in a comparable period.
Hence, we recommend buying Eicher Motors around Rs 3,970-3,950, with a stop-loss of Rs 3,800 and target of Rs 4,180-4,200.
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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