Nifty has remained volatile as the RBI announced the repo rate hike and forward guidance. Technically, Nifty moved above the resistance level of 17,800 after the commentary by the RBI Governor Shakitkanta Das.
On the daily chart, a green candle has formed after two candles of consolidation. Furthermore, the Nifty rose above both the short-term and near-term moving averages. The RSI (relative strength index) momentum oscillator has entered a bullish crossover and is rising.
On a larger scale, we can see that the index has been hovering within a falling channel, with the index moving towards the upper band of the said channel.
Over the near term, the trend may remain positive, with the potential to reach towards 18,000. A decisive breakout above the 18,000 level may induce a rally towards 18,350-18,400. On the lower end, support is visible at 17,650.
Here are three buy calls for next 2-3 weeks:
Poonawalla Fincorp: Buy | LTP: Rs 301 | Stop-Loss: Rs 289 | Target: Rs 330 | Return: 10 percent
The stock has given a downward consolidation breakout on the daily chart, suggesting a rise in optimism. In addition, the stock has moved above the important near term moving average.
Furthermore, the RSI is rising and is in a bullish crossover. Over the short term, the stock is likely to move towards Rs 330. On the lower end, support is at Rs 289.
Mahanagar Gas: Buy | LTP: Rs 903 | Stop-Loss: Rs 870 | Target: Rs 960 | Return: 6 percent
MGL has given a strong breakout from a brief consolidation phase, with volumes increasing. The momentum indicators are trading in the strong buying zone, which confirms the strength of the stock.
The stock's lower end support is visible at Rs 870, which will act as a cushion for the bulls, and the upside potential target is Rs 960.
Intellect Design Arena: Buy | LTP: Rs 461.85 | Stop-Loss: Rs 444 | Target: Rs 485 | Return: 5 percent
On the daily timeframe, the stock has given a prolonged consolidation breakout, indicating a significant upside potential. Besides, the stock has moved above the important moving average.
The daily RSI is in bullish crossover. Over the short term, the stock is likely to move towards Rs 485. On the lower end, support is at Rs 444.
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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