The Nifty last week managed to surpass the crucial resistance of the previous swing high placed at 18,458. This has resulted into symmetrical triangle pattern breakout on the daily chart, which indicates the continuation of a primary uptrend.
The only logical resistance, which is expected in the Nifty from here on is the all-time high placed at 18,887, which also happens to be the 50 percent Fibonacci extension level of the entire swing seen from June 2022 bottom to December 2022 top and from December 2022 top to March 2023 bottom.
Above 18,887, the next resistance comes in at 61.8 percent Fibonacci extension, placed at 19,372 in Nifty. Short-term support for the Nifty has shifted up to 18,450, which happens to be the previous swing high on the short-term chart. Far support is placed in the range of 18,200-18,250.
Breadth of the market is going very strong as a percentage of stocks above their respective 200 DMA have reached at 62. Strong breadth added the strength in the current uptrend of the market.
Technical setup of world market indices is also very strong, as MSCI World and ACWI Indices are on the verge of breaking out from long term horizontal trend line resistance on the weekly charts.
Considering the technical evidence discussed above, we believe that Nifty could extend its rally towards all-time high 18,887, followed by 19,372. Short term traders are advised to hold longs, with a stop-loss of 18,450. Positional traders should keep 18,200 stop-loss in Nifty. Bank Nifty is expected to extend current rally towards 45,000 in the coming weeks.
Here are three buy calls for next 2-3 weeks:
Equitas Small Finance Bank: Buy | LTP: Rs 85.40 | Stop-Loss: Rs 80.55 | Target: Rs 96 | Return: 12.4 percent
The stock price has registered new all-time high with rise in volumes. Primary trend of the stock is bullish as it has been forming higher tops and higher bottoms on the weekly charts.
The stock is placed above all important moving average, indicating bullish trend on all time frames. Indicators and oscillators like MACD (moving average convergence divergence) and RSI (relative strength index) have turned bullish on its weekly charts. NBFC and Banking sector have been outperforming for last two months.
Marico: Buy | LTP: Rs 544.15 | Stop-Loss: Rs 500 | Target: Rs 590 | Return: 8.5 percent
Primary trend of the stock has been bullish as it has been forming higher tops and higher bottoms on weekly charts. Stock price has been finding support on its 50-day EMA.
The stock has broken out from symmetrical triangle on the daily chart and registered new all-time high. Price rise is accompanied by jump in volumes. Indicators and oscillators have turned bullish on daily and weekly charts.
Apollo Hospitals Enterprises: Buy | LTP: Rs 4,640.45 | Stop-Loss: Rs 4,370 | Targets: Rs 4,940-5,150 | Return: 11 percent
Triple Bottom Formation was seen at Rs 4,150 odd levels on the weekly charts. Stock price has been rising with rising volumes. Stock price has broken out from downward sloping trend line on the weekly charts.
It is placed above all important moving averages, indicating bullish trend on all time frame. Indicators and oscillators like MACD and RSI have turned bullish on its weekly charts.
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