The Nifty has managed to maintain its position above both the 20 and 50-day moving average (DMA) clusters, indicating some positive momentum. However, in order to break the pattern of lower highs, it must decisively breach 19,600 mark.
If it succeeds in doing so, the next resistance areas to watch out for are between 19,800 and 20,000. On the flip side, the immediate support level is currently anchored at the 20-DMA, which is at 19,400. A breach below this level may rekindle selling pressure, potentially leading to declines towards 19,191 and 18,888 levels.
Meanwhile, the Bank Nifty is in a consolidation phase, hovering above its 100-DMA. Critical resistance lies within the 44,800–45,000 range, and a breakthrough above this zone could trigger short-covering.
On the downside, 44,000 serves as a key support level, and any breach on the downside could expose the index to further weakness, potentially pushing it towards the 43,000 levels.
Here are three buy calls for next 2-3 weeks:
Bikaji Foods International: Buy | LTP: Rs 512.35 | Stop-Loss: Rs 470 | Target: Rs 574 | Return: 12 percent
On the daily chart, a triangular formation has broken out, with considerable volume in support. Breakouts from chart patterns, such as triangles, are often seen as bullish signals, indicating a potential continuation of the upward trend.
The high volume during the breakout further reinforces the significance of this move. It retested its last breakout level at around Rs 460 and also started a new leg of the rally towards Rs 570. The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
Both the RSI (relative strength index) and MACD (moving average convergence divergence) indicators are supportive of the current strength in the stock's momentum.
On the upside, Rs 540 is an important psychological level; above this, we can expect a move towards Rs 570+. On the downside, a cluster of moving averages at around Rs 470 is a strong demand zone during any correction.
Jain Irrigation Systems: Buy | LTP: Rs 66.75 | Stop-Loss: Rs 61 | Target: Rs 78 | return: 17 percent
The counter exhibits a classical bullish setup, characterised by the breakout of a Bullish Flag formation. Furthermore, it is currently trading above its crucial moving averages, further affirming the bullish sentiment.
The momentum indicators are also indicating a positive stance, adding to the strength of the current trend.
Looking ahead, the immediate target levels on the upside are Rs 74 and Rs 78. If the bullish momentum continues, the counter may aim for these levels in the near future. On the downside, a key support level to watch is Rs 61, which is expected to provide immediate support during any potential corrections.
Precision Camshafts: Buy | LTP: Rs 296.50 | Stop-Loss: Rs 270 | Target: Rs 344 | Return: 16 percent
The counter exhibits a classical bullish setup; it witnessed a multi-month breakout of horizontal resistance at around Rs 190 and made a new 52-week high at Rs 264, then showed a profit booking till the Rs 227 level and again started a new leg of the rally towards Rs 340 levels.
It has experienced a breakout of a Bullish Flag formation with huge volume. Furthermore, it is currently trading above its crucial moving averages, further affirming the bullish sentiment. The momentum indicators are also indicating a positive stance, adding to the strength of the current trend.
Looking ahead, the immediate target levels on the upside are Rs 340. If the bullish momentum continues, the counter may aim for these levels in the near future. On the downside, a key support level to watch is Rs 275, which is expected to provide immediate support during any potential corrections.
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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