The Nifty and the Bank Nifty have been consolidating within a range through the past week, with lower low and lower high formation on i30 (intraday 30 minutes), time frame leaving the bulls fighting to regain strength.
The strength in bulls can be confirmed in case the Nifty goes above 19,450/19,460 levels, similarly for Bank Nifty the same can be seen above 44,000/44,100 zone.
With the festive season on, we can notice some action in pharma, FMCG, PSE and infrastructure. Nifty Smallcap and Midcap also have shown better strength compared to the largecap. So, one can focus on these sectors to pick the quality stocks among them.
Here are three buy calls for three different timeframes:
First pick would be Granules India. The stock on weekly charts has reversed forming support at Rs 270 levels, with momentum indicator RSI (relative strength index) trading at 60 plus which is sign of a fresh bullish trend starting.
The downward sloping resistance trendline breakout can also be seen in the stock, which puts it under the buy list for a target of Rs 450 and stop-loss at Rs 315. The holding period for the stock will be 4-5 months.
The second pick would be Britannia from the FMCG sector. The stock has been trading in a consolidated range for almost three months. One can buy in the range of Rs 4,680-4,700, for a target of Rs 4,950-5,000, while maintaining a stop-loss at Rs 4,550, leaving a risk to reward ratio of 1:2.5.
The holding period for the stock will be about 2-3 months.
Last pick would be Hindustan Aeronautics (HAL) back by news flow. The stock has resumed its primary trajectory of bullish trend, with base formation at Rs 1,800 levels strongly holding on.
It is a portfolio stock, so one can hold for exponential gains with a trailing stop-loss strategy, based on current entry levels. One can keep a stop-loss at Rs 1,880 levels, for a target of Rs 2,700 for a period of 4-5 months.
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