The Nifty remained above its previous consolidation as a global selloff failed to pull the Indian equities down on September 14. On the lower end, the falling trendline acted as crucial support for the Nifty. The index also stayed above the 50-day exponential moving average (DEMA - 17,268) on the daily timeframe, confirming the uptrend.
On the weekly timeframe, the index has remained above the previous swing high. The weekly relative strength index (RSI) is in a bullish crossover and rising.
The trend will likely remain positive as long as the Nifty remains above 17,700. On the higher end, the index may move towards 18,600 once it provides a decisive breakout above 18,100.
The Bank Nifty continues to be strong. It settled 1.3 percent higher on September 14. On the daily chart, the index remained above the previous swing high. The momentum indicator RSI is in a bullish crossover.
As long as it remains above 41,000, the trend is expected to remain positive. On the higher end, the index may move towards 42,000.
Here are three buy calls for the next two to three weeks:
NTPC: Buy | LTP: Rs 172.35 | Stop-Loss: Rs 165 | Target: Rs 187 | Return: 8.5 percent
The stock has moved up after consolidation on the daily chart, suggesting a rise in optimism. The stock also moved above the previous swing high on the daily timeframe.
The trend looks positive for the near to short term. On the higher end, the stock may move towards Rs 187. The current up trend can fail if the stock falls below Rs 165.
Chalet Hotels: Buy | LTP: Rs 336.60 | Stop-Loss: Rs 325 | Target: Rs 360 | Return: 7 percent
The stock has formed a Bullish Engulfing pattern on the daily charts, which is a bullish reversal setup. The stock has found support at 50 DEMA on the daily timeframe.
The trend looks positive for the near to short term. On the higher end, the stock may move towards Rs 360. The uptrend can fail if the index breaks 325.
Bandhan Bank: Buy | LTP: Rs 306.50 | Stop-Loss: Rs 290 | Target: Rs 335 | Return: 9 percent
The stock has moved above the recent consolidation high on the daily chart, which suggests a rise in optimism. Besides, the stock found support at 50 DEMA before moving up.
The trend looks positive for the near to short term. On the higher end, the stock can move towards Rs 335, whereas a slip below Rs 290 will confirm the failure of the uptrend.
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