The Nifty has been making lower lows from last six trading sessions and corrected by more than 600 points. Recently index had rallied by more than 2,100 points from 16,747 to 18,887 zones and 38.20 percent retracement of this entire moves comes near to 18,070 zones which is the low levels marked on December 22.
Mechanical indicator like RSI (relative strength index) has turned lower with negative crossover on weekly scale while on daily charts, the index has broken below its 50 DEMA (day exponential moving average).
India VIX spiked to 16 mark and settled the day near to 15 zone, overall VIX is at lower zones but spike from lower levels along with profit booking decline in broader markets has given some set back to bulls.
Now till Nifty holds below 18,250 level, an immediate structure could remain under pressure for the downside support towards 17,950 and major at 17,777 zones while a hold above 18,250 level only could get stability for a bounce towards 18,442-18,500 levels.
Here are two buy calls and one sell call for next 2-3 weeks:
Lupin: Buy | LTP: Rs 766.30 | Stop-Loss: Rs 730 | Target: Rs 820 | Return: 7 percent
It has been overall moving in a rising channel and recently taken support near to Rs 720 zone which is also its 50 DEMA. It formed a bullish candle along with a decisive hold Rs 760 zone.
We have seen good recovery in pharma stock and it looks for an upside move towards Rs 800-820 zone with support of Rs 730 zone.
TVS Motor Company: Buy | LTP: Rs 1,039 | Stop-Loss: Rs 970 | Target: Rs 1,125 | Return: 8 percent
It is one of the strongest counters of the calendar year 2022. Major trend of the stock is positive but it witnessed correction in last two months from Rs 1,176 to Rs 1,008 levels.
It has seen decent profit booking and now turning and witnessing accumulation near to Rs 1,000 zone to commence the next leg of rally. It requires a small follow up to hold Rs 1,000 mark and in that scenario it can head towards Rs 1,100-1,125 levels with support of Rs 970 level.
Indian Hotels: Sell | LTP: Rs 304 | Stop-Loss: Rs 320 | Taret: Rs 270 | Return: 11 percent
The stock has seen a consolidation breakdown of last 74 trading sessions, and also seen Triple top or multiple Rounding top formation on daily and weekly scale.
It has given a decisive close below Rs 310-315 zone and hold below could see a corrective move towards Rs 270 level, while resistance shifted lower at Rs 320 level.
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