On the weekly timeframe, we can spot that the prices are currently trading within the prior week range which forms an inside candle, indicating a decrease in volatility while no changes in prior uptrend.
The Nifty on the daily charts has corrected from the record high level with a lower low, lower high formation, however, it is sustaining above 18,500. This shows the presence of a positive undertone.
On the indicator front, the RSI (relative strength index) plotted on the weekly timeframe is moving in sync with the price trend which tells that the prices still have a strong momentum.
The Nifty has an immediate resistance placed at 18,887 (fresh high) followed by 19,200 (key resistance) levels. The downside support for the index is placed at 18,365 (prior weekly low) followed by 18,000 levels.
By looking at the overall trend and evidence supported by the indicator, we can infer that the prices can move in a range of 18,887 – 18,365 levels.
Here are three buy calls for next 2-3 weeks:
Redington: Buy | LTP: Rs 191.30 | Stop-Loss: Rs 175 | Target: Rs 235 | Return: 23 percent
Redington is currently trading at its record high level which tells that the prices are already in strong momentum.
The stock in the last week of October 2022 had given a breakout from the inverse Head & Shoulder pattern which already had indicated the beginning of the trend to the upside.
The breakout is confirmed as it is accompanied by higher volumes.
Prices are currently above the key Moving averages of 50, 100 & 200 days EMA (exponential moving average) which confirms the established uptrend.
The RSI plotted on the Weekly timeframe is rising as well as sustaining above 60 mark, shows the strong underlying momentum.
Going ahead we expect the prices to go higher till the level of Rs 235 where the stop-loss must be Rs 175 on the closing basis.
M&M Financial Services: Buy | LTP: Rs 240 | Stop-Loss: Rs 220 | Target: Rs 275 | Return: 14 percent
Post the consolidation from February 2021, prices of M&M Financial Services now have started to get into Higher High, Higher Low formation pointing towards reversal from prior correction.
The stock in the last week of July 2022 had given a breakout from the descending triangle pattern which already had indicated the beginning of the trend to the upside.
The stock has shown a rise on the upside while taking support from the 18 Week EMA which had acted as a strong variable support for the prices in the uptrend since March 2022.
RSI on the daily as well as on the weekly timeframe have sustained well above 60 mark reflecting strong the momentum in the prices.
Going ahead we expect that the prices to go higher till the level of Rs 275 where the stop-loss must be Rs 220 on the closing basis.
Dabur India: Buy | LTP: Rs 604.4 | Stop-Loss: Rs 575 | Target: Rs 670 | Return: 11 percent
Dabur after breaching the swing high of Rs 602 level (August 2022) negated the lower low, lower high formation.
Prices in the latest week have given a breakout from the Cup & handle pattern which indicates beginning of the trend to the upside.
The breakout was confirmed as it was accompanied by gap.
The prices on daily timeframe are continuously hovering around the upper Bollinger Band which tells that the volatility of the prices are rising for upmove.
RSI on the weekly timeframe have shown a range shift which reflects the rising momentum of the underlying.
Going ahead we expect the prices to go higher till the level of Rs 670 where the stop-loss must be Rs 575 on the closing basis.
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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