The Nifty index is seeing a rush for booking profits around the psychological level of 20,000, but there are no significant signs of weakness in the market. The 20-day moving average (20-DMA), which aligns with the 19,500 level, is crucial as it serves as a critical support level. Only if the Nifty falls below this level, we can anticipate a potential correction in the market. On the upside, the immediate resistance area lies between 19,800 and 20,000.
The Bank Nifty index is performing relatively well, with a critical support area between 45,000 and 45,200. A substantial decline is expected only if the Bank Nifty breaches this support level. On the upside, the resistance zone is identified at 46,600 to 47,000.
Market participants should closely monitor the outcome of the upcoming Federal Open Market Committee (FOMC) meeting as it will provide a crucial global cue for the market. Additionally, investors should be prepared for earning reactions in individual counters. Currently, the F&O cues are neutral ahead of July's F&O expiry.
Here are three buy calls for next 2-3 weeks:
Bikaji Foods International: Buy | LTP: Rs 488 | Stop-Loss: Rs 447 | Target: Rs 556 | Return: 14 percent
The counter has come out of its multi-month consolidation with huge volume. It also witnessed a breakout of an Inverse Head and Shoulder's pattern formation on the daily chart. The structure of the counter looks lucrative, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.
On the upside, Rs 500 is an important psychological level; above this, we can expect a move towards Rs 550+. On the downside, a cluster of moving averages at around Rs 447 is a strong demand zone during any correction.
Hindustan Oil Exploration Company: Buy | LTP: Rs 230 | Stop-Loss: Rs 210 | Target: Rs 264 | Return: 15 percent
On the daily chart, it has witnessed a breakout of one month of consolidation with strong volume while on the weekly chart it has given a breakout of Flag pattern formation. The overall structure of the counter is very classical on the daily chart. The pattern suggests an immediate target of Rs 250, while it has the potential to move further upside till Rs 264 level.
On the downside, Rs 210 will act as an immediate support level. MACD is supporting the current strength whereas the momentum indicator RSI is also positively poised.
Maharashtra Seamless: Buy | LTP: Rs 501 | Stop-Loss: Rs 460 | Target: Rs 584 | Return: 16 percent
The stock has recently broken out of a triangle formation on the daily chart, accompanied by significant trading volume. This breakout suggests a positive outlook for the stock in the short to long term. Additionally, the stock is trading above its important moving averages, further reinforcing its bullish sentiment.
Both the RSI and MACD indicators are supportive of the current strength in the stock's momentum.
In terms of price levels, the range of Rs 550 holds psychological significance as a key resistance level. If the stock manages to surpass this level, it could potentially rally toward Rs 580 or higher. On the downside, Rs 460 is a strong demand zone during any correction.
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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