The Nifty has been trading within a broader range of 21,710-22,204 without a clear trend. A trend noticed in the trading hours indicated 'selling on the rise' and it is likely to stay on as the market breadth will remain weak until the index closes above 22,220.
The Nifty has slipped below the 20-day moving average (DMA). Notably, Nifty IT and FMCG stocks showed weakness. The Nifty is anticipated to find long-term support at 21,700, followed by 21,600 levels.
The Bank Nifty ended Tuesday's session at 46,600, reflecting a 0.56 percent decline. Over the past month, the index has seen a marginal gain of just 0.05 percent.
Private banking stocks remained fragile and lacked sufficient backing, while the Nifty PSU index indicated weakness on the weekly chart.
From a technical perspective, Bank Nifty formed a head-and-shoulders pattern with a confirmation likely if it breaks below the neckline at 45,800 potentially leading to a test of the 45,000 levels. However, closing above 47,300 could signal a resumption of the uptrend.
Here are three buy calls for next 2-3 weeks:
Tata Communications: Buy | LTP: Rs 1,947.6 | Stop-Loss: Rs 1,870 | Target: Rs 2,080 | Return: 7 percent
Tata Communications is currently displaying a robust bullish momentum, praised by consistent higher highs and higher lows. The stock is sustaining above Rs 1,940 levels supported by substantial trading volumes. Moreover, the stock is trading above key moving averages, including the short-term (20-day) and medium-term (50-day) further solidifying its bullish stance. The relative strength index (RSI) remains at 56 levels.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 1947.60 for a target price of Rs 2,080. The stop-loss can be kept at Rs 1,870.
Indian Oil Corporation: Buy | LTP: Rs 167.45 | Stop-Loss: Rs 158 | Target: Rs 182 | Return: 9 percent
The stock underwent a correction from its peak and has formed strong support at the 38.2 percent Fibonacci retracement level. The RSI has stabilized above the critical 50 level.
A Flag pattern appears on the daily chart that could indicate that the current trend is likely to persist. The stock remains positioned above the 50-day daily moving average (DMA) as well.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 167.45 for a target price of Rs 182. The stop-loss can be kept at Rs 158.
Can Fin Homes: Buy | LTP: Rs 754.45 | Stop-Loss: Rs 725 | Target: Rs 820 | Return: 9 percent
The stock has undergone an extended consolidation phase and has established a robust support base around Rs 740 levels in the weekly time frame. Price is sustaining above Rs 750 levels with decent volumes pointing out buying interest among the short-term traders.
Also, a positive crossover is indicated in MACD (moving average convergence divergence) while RSI stands at 48 levels.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 754.45 for a target price of Rs 820. The stop-loss can be kept at Rs 725.
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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