Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The bears continued to hold their grip and the Nifty50 index saw selling pressure around the resistance zone of 18,300-18,350.
The options data indicates a hurdle at 18,300 where the highest open interest was built up a day before the monthly expiry.
The index lower-end support is visible at 18,200-18,150 which will act as a cushion for the bulls. The bulls need to cross the level of 18,350 decisively to continue the momentum on the upside towards the 18,500 level.
The Bank Nifty index continued its outperformance and the index managed to hold the critical support zone 42,500-42,400. The index on the upside faces a hurdle at 43,000 where the highest open interest was built up on the Call side.
The banking index remains in a buy-on-dip mode as long as the mentioned support levels are held. The momentum oscillators are in the buy zone which will confirm the strength of the index.
Here are three buy calls for next 2-3 weeks:
Fertilisers and Chemicals Travancore: Buy | LTP: Rs 142 | Stop-Loss: Rs 133 | Target: Rs 148-153 | Return: 8 percent
The stock on the daily chart has given a strong breakout from large consolidation range with volumes. Its momentum oscillators are in the strong buying zone which confirms the strength of the stock.The momentum is likely to continue post the breakout which will help the stock climb towards the levels of Rs 148-153 on the upside. The lower end support zone of Rs 135-133 will act as cushion for the bulls.
Apollo Hospitals Enterprises: Buy | LTP: Rs 4,605 | Stop-Loss: Rs 4,400 | Target: Rs 4,800-4,900 | Return: 6 percent
Apollo Hospitals on the daily chart has given a strong breakout from a sideways trend with rising volumes. The F&O data, too, suggested fresh long built-up positions with the rise in open interests and price.
The momentum indicator RSI has also given a positive crossover on the daily chart confirming the buy signal. The lower-end support is at Rs 4,400 levels which will act cushion for the bulls and the upside visible targets are Rs 4,800-4,900.
Aditya Birla Capital: Buy | LTP: Rs 129 | Stop-Loss: Rs 123 | Target: Rs 135-140 | Return: 8.5 percent
The stock after a recent breakout has retested the support zone and resumed the up move with increase in volumes. The momentum oscillator RSI has also given a positive crossover on the daily chart confirming the buy signal.
The stock has witnessed short covering in the November series and fresh long have been added in the December series which indicates rollovers in the upcoming month.
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