On the monthly chart, the Nifty is trading in its prior month range which points to a mixed undertone in the index.
On the weekly chart, the prices have taken resistance from the downward slopping trend line for the fourth time since October 2021 and is maintaining a higher-high, higher-low formation.
Prices on the daily time frame have sustained above the 20-day SMA (simple moving average), which was acting as a variable support to the prices.
RSI plotted on the daily and the weekly timeframe is above 50, which reflects strong momentum in the index.
The index has its immediate support placed at the level of 17,650 (20 days SMA). On the other hand, the resistance is placed at the level of 17,992 (swing high) followed by 18,250 (key resistance).
Looking at the overall chart pattern, we feel that the overall trend is positive and the index may attempt to go higher till the level of 17,992 and 18,250 level. Our bullish view would be negated if we see prices sustaining below the level of 17,350.
Here are three buy calls for next 2-3 weeks:
Tata Power: Buy | LTP: Rs 244.90 | Stop-Loss: Rs 230 | Target: Rs 280 | Return: 14 percent
Tata Power has shown a bounce from the 38.2 percent Fibonacci retracement level of prior advance from level Rs 27 (May 2020) till Rs 298 (April, 2022).
On the daily timeframe, prices have given a breakout from Inverse Head and Shoulder pattern, which indicates a beginning of the trend on the upside.
The Bollinger Band on the daily timeframe have started to expand with volume participation indicates that the volatility in the underlying is increasing for upside move.
RSI (relative strength index) plotted on weekly and daily timeframe have sustained above 50 mark which tells that the prices are in strong momentum.
We recommend to buy this stock for the target of Rs 280 with stop-loss at the level of Rs 230 on the Closing basis.
Central Depository Services: Buy | LTP: Rs 1,420.65 | Stop-Loss: Rs 1,250 | Target: Rs 1,737 | Return: 22 percent
CDSL is currently trading within 20 percent of its all-time high level, which tells that the stock is in a strong momentum already.
On the daily timeframe, prices have given a breakout from the Rounding Bottom pattern, indicated beginning of trend on the upside.
The breakout was confirmed by high volumes.
RSI plotted on the weekly time frame is rising higher with the prices which again confirms the rising momentum in the counter.
Going ahead we expect the prices to go higher till its record high level which is Rs 1,737 where the stop-loss must be Rs 1,250 on the closing basis.
Axis Bank: Buy | LTP: Rs 779.75 | Stop-Loss: Rs 712 | Target: Rs 870 | Return: 11 percent
On the weekly timeframe we can spot that prices have shown a bounce from crucial support of Rs 630 level.
On the daily timeframe prices after a breakout from double bottom pattern on July 18, 2022 which indicated a beginning of trend on the upside.
Bollinger band plotted on the daily timeframe have started to expand which points towards the rising volatility of the prices for an up move.
RSI plotted on the Weekly timeframe have shown a breakout reflecting the rising momentum in the prices.
We recommend to buy this stock for the target of Rs 870 with stop-loss at the level of Rs 712 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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