While the bullish momentum in the Indian market remained intact as the Nifty crossed the 11,300 level. Bank Nifty was also able to close above 22,200, with gains in HDFC twins and gains in Axis Bank.
The rally was supported by metal counters, with Tata Steel, JSW Steel, and Hindalco being the top performers.
On the derivative front, call writers observed their position to be subject to 11,200 strikes, while put writers appeared to switch to higher bands, indicating that it was likely to be bullish in the coming sessions as well.
Technical front, Bank Nifty is more positive on the charts.
The immediate barrier to the Bank Nifty is at 22,350, on top of that, the next buy can be seen up to 22,700 in the coming sessions.
Here are three buy calls for the next 2-3 weeks:
Bhageria Industries | Buy | LTP: Rs 135.55 | Target price: Rs 149 | Stop loss: Rs 120 | Upside: 10%
Over the past two months, the stock has been consolidating in the range of Rs 101 to Rs 125, with prices above its short- and long-term moving average on a daily and weekly basis.
At the current stage, the stock has given a consolidation breakout with positive differences on secondary oscillators as well as an increase in price and volume.
On the weekly charts, the stock is above its 200-day exponential moving average, indicating a limited loss in prices.
Traders can accumulate stock in the range of Rs 130-135 upside down above Rs 149 with a stop loss of less than Rs 130.
Garden Reach Shipbuilders | Buy | LTP: Rs 235.05 | Target price: Rs 261 | Stop loss: Rs 205 | Upside: 11%
The stock trades well above its 200-day exponential moving average on the daily charts. Can be seen trading on a rising channel over the course of the week and forming a high bottom pattern.
This week, the stock gave a breakout above Rs 225 after creating a rounding bottom pattern on the daily charts.
The latest breakout along with rising volumes indicates the next upside of prices.
Traders can store in the range of Rs 221-231 with a stop loss of less than Rs 205 for a target above Rs 261.
Tata Steel Long Products | Buy | LTP: Rs 302.35 | Target price: Rs 340 | Stop loss: Rs 270 | Upside: 12%
The stock has been consolidating in the range of Rs 235-275 over the last two months with a steady buying at support levels.
The integration established an inverted head and shoulder pattern on daily maps.
This week, we noticed the latest breakout on the neckline of the model structure.
Price-volume action on the charts indicates further growth and the stock has a constant 100-day exponential moving average.
For targets above Rs 340, traders can collect stock in the range of Rs 295-302 with a stop loss of less than Rs 270.
Shitij Gandhi, Senior Technical Analyst at SMC Global Securities.
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