After a couple of weeks ended in flat trading, the domestic market rebounded last week. The Nifty50 went closer to its all-time high of 18,887 and ended the week with a considerable gain of around 1.5 percent. On the other hand, the broader markets outperformed the benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained around 3 percent during the week.
The trendline breakdown which occurred during the previous week in the Nifty spot has been negated since the index has managed to surpass the initial hurdle of 18,777. Also, the ‘shooting star’ candlestick pattern on the weekly scale has been negated. Now the index seems to be heading towards 18,900 – 19,000 which can be the best-case scenario.
We again expect some softness from the zone of 18,900 – 19,000 since there is a strong hurdle of a trendline and the upside is not supported by Nifty Bank index. Markets seem to have over stretched themselves and it would be better to remain vigilant going ahead. On the downside, immediate support is at 18,660 and only a breach of the same might halt this trend.
The Nifty Bank index once again failed to clear the top of 44,500 last week and closed lower making a ‘double top’ kind of formation. The index underperformed the benchmark indices during the week and underwent a trend line breakout.
Going ahead, we expect fresh downside in the index till the time 44,500 is not taken out. The immediate support for the index is at 43,400. On the upside, 44,500 seems to be an initial resistance and only a move above the same might extend the rally above 45,000 milestone.
Here are three buy calls for next 2-3 weeks:
Firstsource Solutions: Buy | LTP: Rs 129 | Stop-Loss: Rs 112 | Target: Rs 155 | Return: 20 percent
For the last one year, the said counter has been consolidating in the range of Rs 100-120 approximately. Recently, it gave a clean breakout along with heavy volume which hints towards further upside in the counter.
Additionally, on weekly scale MACD is displaying bullish crossover exactly above zero line which is sign of further bullish momentum.
One can buy in the range of Rs 125-132, for a target of Rs 155 and stop-loss of Rs 114.
One 97 Communications: Buy | LTP: Rs 895 | Stop-Loss: Rs 840 | Target: Rs 1,012 | Return: 13 percent
Recently the said counter has given breakout on weekly scale by taking out its previous swing high of Rs 845 and currently trading well above it.
From indicator perspective, weekly RSI and Stochastics are hinting bullish momentum in coming few weeks. So, one can buy between Rs 890-900 with an upside target of Rs 1,012 and stop-loss would be Rs 840 on a daily close basis.
IndusInd Bank: Buy | LTP: Rs 1,314 | Stop-Loss: Rs 1,200 | Target: Rs 1,500 | Return: 14 percent
Since the last 8 months, the said counter has been consolidating between Rs 1,050-1,250 on a monthly scale. During May 2023 it gave a breakout from the said range, and it is well set to test Rs 1,500 levels in the coming few weeks.
Having said that, the monthly MACD has made a bullish cross near the zero line which is hinting towards bullish momentum. One can buy between Rs 1,300-1,320 for a target of Rs 1,500 and a stop-loss of Rs 1,200.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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