By Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the monthly charts, the Nifty is sustaining above the breakout of the Cup & Handle pattern at life-high levels indicating a strong positive undertone of the index. On the weekly charts, the stock has been consistently forming a higher-top, higher-bottom pattern since April 2023.
We witnessed the Nifty consistently respecting the support level of the 13-day EMA (exponential moving average) since April 2023 indicating strong strength of the primary bullish trend.
The momentum indicator RSI has sustained above the 65 level on all the time frames like daily, weekly and monthly, indicating strong positive momentum of the index.
The index has strong support at 19,562 (weekly low), followed by 19,200 (key support). While on the higher side, the mark of 20,200 followed by 20,400 are crucial levels to watch out for.
Here are three buy calls for next 3-4 weeks:
HDFC Asset Management Company: Buy | LTP: Rs 2,520 | Stop-Loss: Rs 2,350 | Target: Rs 2,950 | Return: 17 percent
HDFC AMC stock, after experiencing a correction since December 2019, has established a solid support base ranging from Rs 1,610 on the lower side to Rs 2,250 on the higher side.
Recently, the stock broke out of the Double Bottom pattern, indicating the beginning of the upward trend.
On the daily timeframe, HDFC AMC stock is currently trading above important moving averages, specifically the 50-day and 200-day exponential moving averages (EMA). This confirms the presence of an uptrend in the stock's price.
Moreover, the relative strength index (RSI) on the weekly timeframe is showing positive momentum, as it has risen and sustained well above the 60 mark.
Based on our analysis, we anticipate that the prices of HDFC AMC will continue to rise towards Rs 2,950 level. It is crucial to strictly maintain a stop-loss at Rs 2,350, based on the closing prices.
Century Textiles and Industries: Buy | LTP: Rs 971.75 | Stop-Loss: Rs 900 | Target: Rs 1,120 | Return: 15 percent
Century Textiles stock is currently demonstrating strong momentum as it is approaching record highs. In addition, a breakout of the bearish channel on the weekly timeframe in late June 2023 suggests a continuation of the upward trend.
Furthermore, the RSI has shown a breakout, indicating increasing momentum in the stock's price. Given these compelling factors, it can be inferred that Century Textiles stock is displaying robust performance.
Looking ahead, we anticipate the prices to climb towards Rs 1,120 level. It is recommended to set a stop-loss at Rs 900 based on closing prices to effectively manage potential downside risks.
Asahi India Glass: Buy | LTP: Rs 558.65 | Stop-Loss: Rs 520 | Target: Rs 650 | Return: 16 percent
The correction took place gracefully as the stock did not get into the formation of lower highs, lower lows post-January 2023.
On the weekly charts, the stock has given a Rectangle pattern breakout with volume confirmation which confirms the bullish structure of the stock. On the daily charts, the stock has given a Bullish Flag pattern breakout in the latest trading session.
Also, the stock is sustaining above its important moving averages like 50, 100 & 200-day SMA (simple moving average) which shows the strong bullish sentiments of the stock.
The momentum Indicator RSI on the weekly timeframe is rising and sustaining above 60 levels reflecting the presence of positive momentum. We expect the prices to move higher to Rs 650 levels, where the stop-loss must be Rs 520 strictly on the closing basis.
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