Nifty50 is currently trading at a record high which suggests that the index already is in strong momentum, while maintaining Higher High, Higher Low on the weekly timeframe.
On the daily timeframe, the index has never closed below the prior day's low for last 8 trading sessions, which shows the buying has emerged at the lower levels.
On the indicator front, the RSI (relative strength index) plotted on the weekly timeframe is rising and moving in sync with price trend which reflects the rising momentum.
The Nifty has immediate resistance placed 19,000 (psychological level) followed by 19,600 (key resistance) levels. The downside support for the index is placed at 18,365 (weekly low) followed by 18,000 levels.
By looking at overall trend and evidence supported by indicator, we can infer that the prices can move higher till the level of 19,000 followed by 19,600 levels.
Here are three buy calls for next 2-3 weeks:
Persistent Systems: Buy | LTP: Rs 4,324 | Stop-Loss: Rs 4,100 | Target: Rs 4,980 | Return: 15 percent
Looking at the ratio charts of Persistent against the Nifty IT index, we can spot the stock since mid-2019 has most of the time outperformed the benchmark.
The stock in the latest week has given a breakout from the double bottom pattern, indicating beginning of the trend to the upside.
The Bollinger band on daily timeframe have started to expand with the rising volumes.
RSI on the weekly timeframe have shown a breakout too which reflects the rising momentum.
Going ahead we expect the prices to go higher till the level of Rs 4,980, where the stop-loss must be Rs 4,100
GMR Airports Infrastructure: Buy | LTP: Rs 42.75 | Stop-Loss: Rs 39.50 | Target: Rs 51 | Return: 19 percent
GMR Infra has shown a bounce from the 50 percent Fibonacci retracement level of advance from 14.10 (March 2020) to 49.15 (January 2022).
In the latest week, the prices have given a breakout of the rectangle pattern, indicating continuation of prior uptrend.
Prices are hovering around the upper Bollinger band on Daily timeframe which show the rising volatility of the trend for an up move.
RSI on the daily timeframe as well as on weekly timeframe are above 60 mark, reflecting rising momentum of the underlying.
Going ahead we expect the prices to go higher till the level of Rs 51 where the stop-loss must be Rs 39.50 on the closing basis.
UltraTech Cement: Buy | LTP: Rs 7,274 | Stop-Loss: Rs 6,700 | Target: Rs 8,100 | Return: 11 percent
UltraTech Cement post November 2021, for the first time, now has started to get into Higher High, higher low formation.
In the latest trading week, the stock has given a breakout from the Inverse Head and Shoulder pattern, indicating reversal to the upside.
The stock has sustained well above upper Bollinger band on the daily Timeframe pointing towards the rising volatility of the stock.
The RSI have shown a Range shift on weekly timeframe reflecting the rising momentum of the underlying.
Going ahead we expect the prices to go higher till the level of Rs 8,100 where the stop-loss must be Rs 6,700 on the closing basis.
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