The Nifty has demonstrated a robust breakout above the significant congestion zone at 18,400-18,430. Sustaining above this zone will be crucial for the next up move, which can take the index to 18,800-18,700, which represents an all-time high and a significant psychological resistance level. Immediate support for the index is at 18,300.
Instances of the index achieving new highs without the support of broader markets have been rare. The strong breakout in the Nifty midcap indicates that the benchmark is gaining momentum and poised to scale fresh highs.
The Nifty Bank, too, is on the cusp of reaching its all-time high and a breakout above the 44,100-44,150 range carries strong bullish implications. The index is projected to advance towards 46,000 and 48,000 in the upcoming months, presenting buying opportunities on dips as long as it maintains support above 42,000.
Here are three buy calls for the next couple of weeks:
Persistent Systems: Buy | LTP: Rs 5,089 | Stop-Loss: Rs 4,750 | Target: Rs 5,700 | Return: 12 percent
The stock has been one of the most resilient names during the past 18 months of turmoil in the IT index. The stock has staged a breakout from the Cup and Handle pattern and is expected to head towards Rs 5,600-5,700 while stop-loss for the trade can be placed near Rs 4,750.
InterGlobe Aviation: Buy | LTP: Rs 2,323 | Stop-Loss: Rs 2,240 | Target: Rs 2,500 | Return: 8 percent
The stock recently broke out of a significant consolidation zone between Rs 2,240 and Rs 2,280. It has also had a bullish breakout from a rising wedge pattern, which typically indicates a bearish trend.
Usually, when such bearish patterns fail, they pave the way for strong moves in the opposite direction. However, if the stock can maintain its position above Rs 2,280-2,260, it is expected to advance to the Rs 2,450-2,500 range.
PI Industries: Buy | LTP: Rs 3,478.55 | Stop-Loss: Rs 3,350 | Target: Rs 3,800 | Return: 9 percent
Following a remarkable upward trend from the lows in March 2020, the stock has entered a broad consolidation phase and formed an Ascending Triangle pattern. Even in the recent corrective move, the stock experienced a shallow correction and promptly retraced its previous highs.
The stock is now poised for a breakout, which could lead to a rapid ascent towards the Rs 3,750-3,800 zone.
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