On the weekly timeframe, we can spot that the prices have shown a bounce from the 50 percent Fibonacci retracement level of the prior advance from 16,747 (September 2022) till 18,887 (November 2022), which is again in sync with the bearish trend line which shows change in the polarity.
The Nifty on the daily charts is attempting to move lower till the level of 17,775 showing bearish undertone for shorter term prices.
On the indicator front, RSI (relative strength index) plotted on the weekly timeframe is sustaining below 50 mark reflecting momentum shift for down move.
The Nifty has immediate resistance placed at 18,100 (multiple touch points) followed by 18,350 (key resistance) levels. The downside support for the index is placed at 17,900 (multiple touch points) followed by 17,775 (key support).
Based on the overall trend and indications from indicators, it is expected that the Nifty will move down towards 17,775 level.
Here are three buy calls for next 2-3 weeks:
Zydus Lifesciences: Buy | LTP: Rs 432.30 | Stop-Loss: Rs 395 | Target: Rs 480 | Return: 11 percent
Zydus Lifesciences stock entered a period of consolidation from June 2021 to March 2022, which could be seen as a base formation. The stock experienced a change in trend around Rs 390 level, with increasing bullish sentiment.
In October 2022, the stock broke out of a rectangle pattern, signaling a potential upward trend.
The daily price movements have been volatile, as shown by the prices hovering around the upper Bollinger band.
The relative strength index (RSI) on the weekly timeframe also reflects increasing momentum in the stock's price.
Going ahead we expect the prices to go higher till the level of Rs 480 where the stop-loss must be Rs 395 on the closing basis.
Power Finance Corporation: Buy | LTP: Rs 156.90 | Stop-Loss: Rs 130 | Target: Rs 200 | Return: 28 percent
It appears that the stock for PFC has recently broken through a bearish trend line that has been in place since November 2010, suggesting that a reversal to an uptrend may be underway.
This potential reversal is further supported by the stock breaking out of a rounding bottom pattern.
The breakout is confirmed as it is reinforced by higher volumes.
The relative strength index (RSI) on the weekly timeframe has also shown a breakout, indicating rising momentum for an upward move.
Going ahead we expect the prices to move Higher till Rs 200 where the stop-loss must be Rs 130 on the closing basis.
Hindustan Zinc: Buy | LTP: Rs 337.70 | Stop-Loss: Rs 318 | Target: Rs 385 | Return: 14 percent
Hindustan Zinc, now has started to get into higher high, higher low formation post October 2021.
The stock has shown a bounce to the upside after retesting the Triangle pattern, the breakout was witnessed on November 14, 2022. This confirms the beginning of potential uptrend.
On the daily timeframe, the stock has remained above the upper Bollinger Band, suggesting rising volatility in an upward move.
The relative strength index (RSI) on the weekly timeframe has also shown a breakout, indicating strong momentum for the stock's price. These factors suggest that Hindustan Zinc may be in the early stages of an uptrend.
Going ahead we can expect the prices to move higher towards Rs 385 where the stop-loss for the setup would be Rs 318 on the closing basis.
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