On September 19, the Nifty broke three sessions of losing streak and closed with a gain of more than 100 points. Since 10:30am, the Nifty stayed in the narrow range for the entire session but managed to close above the upward sloping trend line adjoining the daily lows of June 20 and July 1. The Nifty also managed to hold above the support derived from 34 days EMA (exponential moving average).
Resistance for the Nifty are seen at 17,760 and 17,826, which happens to be 50 percent and 61.8 percent retracement of the entire fall seen from 18,088 (recent swing high made on September 13, 2022) and Monday's low of 17,429. Below 17,429, the Nifty is expected to enter the short-term down trend. If it were to break the 17,429 support, then it could extend the correction towards the previous swing low support of 17,166.
Indicators and oscillators turned bearish on the short-term charts. Below 17,166, the Nifty could slide towards next support of 16,850 odd levels. The level of 18,100 seems to have become ceiling for Nifty in the short term. On the higher side, 18,100 seems to be have become ceiling for the short term.
Bank Nifty has outperformed Nifty with a healthy margin recently. Year-to-date, Bank Nifty has risen 15.5 percent against 1.5 percent rise in Nifty.
Technical Setup of Bank Nifty is much stronger than Nifty. Bank Nifty has not even closed below its 5 days EMA for two consecutive sessions, while Nifty has sustained below its 20 days EMA. Positional bullish trend of Bank Nifty remains intact. Indices like IT and Pharma have been dragging Nifty's performance while participation of PSU banks have helped Bank Nifty to become one of the best performing sectors.
Here are three buy calls for next 2-3 weeks:
RPG Life Sciences: Buy | LTP: Rs 768.75 | Stop-Loss: Rs 720 | Targets: Rs 860-910 | Return: 12-18 percent
The stock has broken out from the Bullish Flag pattern on the daily chart. Stock has been forming higher tops and higher bottoms on the daily charts.
Recently the stock price registered fresh all-time high at Rs 804 and current levels are very near to that level.
Indicators and oscillators setup is bullish on daily and weekly charts. On quarterly charts, the stock has formed strong bull candle after witnessing running correction for few quarters, which indicates the resumption of long term bullish trend.
Poonawalla Fincorp: Buy | LTP: Rs 325.9 | Stop-Loss: Rs 295 | Targets: Rs 363-395 | Return: 11-21 percent
On September 15, the stock broke out from the narrow consolidation, which held for previous two weeks. Price breakout is accompanied with jump in volumes.
Stock is placed above its 20,50, 100 and 200 DMA (days moving average), which indicates bullish trend on all time frames.
Indicators and Oscillators like RSI (relative strength index) and MACD (moving average convergence and divergence) have been showing strength in the current uptrend. NBFC Sector has been outperforming and same is expected to continue.
Welspun Corp: Buy | LTP: Rs 266.6 | Stop-Loss: Rs 240 | Targets: Rs 297-325 | Return: 11-22 percent
The stock has broken out from the consolidation pattern which held for previous three months. Stock has reached 14 years high with rising volumes.
It has been forming higher tops and higher bottoms on the daily and weekly chart. It is placed above all important moving averages, indicating bullish trend on all time frames.
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