Nifty has formed the Doji candle pattern, however, it has maintained its higher top higher bottom formation on the monthly charts which shows the pace of long-term bullish trend has slowed down.
On the weekly charts, the index has maintained its lower top lower bottom formation but it has managed to sustain above its 20-week simple moving average (SMA) which indicates medium-term trend remains in a consolidation mode.
On the daily charts, Nifty could not sustain above its 20-day SMA and it has formed lower top lower bottom price formation which indicates the short-term bearish trend is intact.
On the indicator front, the index remains above the long-term moving averages of 100-day and 200-day SMA which is a relaxing factor.
The RSI plotted on the medium and long-term timeframe can be seen moving downwards, indicating the medium and long-term trend lost its strong pace of positive momentum.
The key support levels to watch out for in the short term are 14,264 (swing low) and 14,000 (key support), followed by 13,596 (January 2021 low).
On the upside, key resistance levels are 15,051 (2-week high). If the index sustains above this level, we might see it head higher towards 15,336 (5-week high) and eventually 15,431 (all-time high).
For the medium-term, we might see the index to be rangebound between 14,264 and 15,431.
Here are three buy calls for the next 2-3 weeks:
JSW Steel | LTP: Rs 505.50 | Target price: Rs 578 | Stop loss: Rs 425 | Upside: 14%
JSW Steel has been forming a higher top higher bottom pattern on the monthly charts since June 2020 which shows the long-term bullish trend of the stock is intact.
A couple of weeks back, the stock gave a breakout and since then it has been continuously making fresh lifetime highs every week which shows a strong bullish undertone of the stock.
We witnessed strong volume confirmation in every bullish movement which strengthens the ongoing up-trend.
On the indicator front, the ADX plotted on the medium-term can be seen moving higher, indicating strong momentum of the current up-move.
Going ahead, the immediate resistance is placed at Rs 519 (100 percent Fibonacci extension level of Rs 257 –413 and projected from Rs 402), followed by Rs 578 (138.2 percent Fibonacci extension level of the rise from Rs 257-413 and projected from Rs 402).
The key support levels are Rs 427 (breakout level) and Rs 363.
One can buy the stock at the current levels and add on dips till Rs 450 for the target of Rs 519, followed by Rs 578 with a strict stop loss of Rs 425 on a closing basis.
TCS | LTP: Rs 3,167 | Target price: Rs 3,620 | Stop loss: Rs 3,060 | Upside: 14%
On the monthly charts, TCS has been forming higher top higher bottom formation since June 2020 which shows the long-term bullish trend of the stock is intact.
The stock has made a lifetime high of Rs 3,339.80 in January 2021 and after that, it corrected to 20-week SMA. It took strong support there and bounced back which shows medium-term up-trend is also intact.
This week, it has given a breakout of the small consolidation phase of the last four weeks and is currently trading near a 5-week high which shows a strong positive undertone of the stock for the medium-term.
In the last trading session, the stock broke out of a descending trend line at Rs 3,155 with volume confirmation on the daily chart which indicates the stock is now ready to move in the upper orbit of bullishness.
The momentum indicator RSI plotted on multiple timeframes, can be seen placed above 60 level and is moving higher, indicating the stock is currently in bullish momentum.
Resistance is placed at Rs 3,340 (all-time high), followed by Rs 3,461 (78.6 percent Fibonacci extension level of Rs 2,600–3,340, projected from Rs 2,880) and towards Rs 3,620 (100 percent Fibonacci extension level of Rs 2,600–3,340, projected from Rs 2,880).
The key level to watch out for on the downside is Rs 3,060 (weekly low), followed by Rs 2,987 (3-week low).
One can buy the stock at the current level for the target of Rs 3,340, followed by Rs 3,461 and Rs 3,620 with a strict stop loss of Rs 3,060 on a closing basis.
ACC | LTP: Rs 1,912 | Target price: Rs 2,170 | Stop loss: Rs 1,830 | Upside: 13.5%
ACC has been forming a higher top higher bottom pattern on all timeframes since June 2020 which shows a strong positive undertone of the stock for the medium to long-term.
On the weekly charts, we have seen a multiyear breakout at Rs 1,830 with volume confirmation and also the stock is sustaining above that level which indicates its strong bullish nature.
RSI plotted on multiple timeframes can be seen placed above 60 level and moving higher, indicating that the stock is currently in a strong positive momentum.
Immediate resistance is placed at Rs 1,981 (100 percent Fibonacci extension level of Rs 1,289 to Rs 1,785 and projected from Rs 1,485), followed by Rs 2,170 (138.2 percent Fibonacci extension level of Rs 1,289 to Rs 1,785 and projected from Rs 1,485 level).
The key support levels are Rs 1,830 and Rs 1,680. One can buy the stock at the current level with a target price of Rs 1,981, followed by Rs 2,170 and a strict stop loss of Rs 1,830 on a closing basis.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
