The Nifty has been making higher highs and higher lows for the last four trading sessions, and on January 17, it managed to close above the 20-DMA (day moving average). However, we need a follow-through on January 18, and if the Nifty manages to trade above 18,088, then we can expect a move towards 18,250–18,300 zone.
On the downside, 17,950 will act as an immediate support level, while 17,800 is a sacrosanct support level on a closing basis.
Bank Nifty is also consolidating in a band of 41,700- 42,700, and any decisive move from this band will dictate further direction. However, if it slips below 41,700 level, the 100-DMA of 41,370 will be the immediate support level. If it crosses 42,700 level, then a short covering move towards 43,400 is expected.
Global cues are also muted for the last few days, but the FIIs' flow will be critical because they have been selling aggressively in the Indian market since the start of 2023. We can expect sector- and stock-specific moves amid the Q3 earnings season and pre-budget expectations.
Here are three buy calls for next 2-3 weeks:
Speciality Restaurants: Buy | LTP: Rs 275 | Stop-Loss: Rs 239.50 | Target: Rs 324 | Return: 18 percent
The counter has broken a horizontal trend line resistance on the daily chart and has a strong bullish setup. It has retested its previous breakout level of Rs 240 after hitting a fresh all-time high.
On the longer timeframe, it has witnessed a breakout of a triangle formation pattern with huge volume. The technical chart of this counter looks very promising, as it is trading above all of its moving averages.
On the higher side, Rs 300 acts as susceptible levels; above this, we can expect a long move towards Rs 320+ in the shorter to longer timeframe, while on the lower side, Rs 240 serves as an important support during any correction.
Minda Corporation: Buy | LTP: Rs 241 | Stop-Loss: Rs 210 | Target: Rs 284 | Return: 18 percent
The counter has witnessed a breakout of Inverse Head & Shoulder pattern formation in the long-term timeframe. It is coming out of long-term consolidation on the daily chart. The breakout is led by heavy volume and is closing above the breakout level after 4-month.
On the upside, Rs 250 is an immediate hurdle. Above this, we can expect a move towards Rs 280.
On the downside, a cluster of moving averages around Rs 210 is a strong demand zone during any correction.
Anant Raj: Buy | LTP: Rs 119.60 | Stop-Loss: Rs 105 | Target: Rs 144 | Return: 20 percent
The structure of the counter is very lucrative. It has witnessed a strong multi-month breakout above Rs 86. It has retested its previous breakout level of Rs 86, and now it starts a new leg of rallying towards Rs 130.
On the higher side, Rs 121 acts as susceptible levels; above this, we can expect a long move towards Rs 140+ in the shorter to longer timeframe, whereas on the lower side, Rs 105 serves as an important support during any correction.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
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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