Bulls made a smart comeback in the last two sessions after Indian markets witnessed a deep cut in the week gone by.
Nifty managed to surpass 14,900 on the back of short-covering done by Call writers at 14,800 strike.
On the technical front, the index almost made a V-shape recovery after testing the 14,470 mark on the downside where it took support at its 50-day exponential moving average on the daily charts.
At the current juncture, Call writers are seen shifting to 15,000 strike which should act as an immediate hurdle for Nifty, while on the downside 14,800 and 14,700 will act as crucial support for the index.
For the upcoming sessions, we expect volatility to grip the market and a seesaw move in Nifty and Bank Nifty.
Traders should keep stock-specific action on the radar with bias likely to remain in favour of bulls as long as Nifty holds above 14,700 level.
Here are three buy calls for the next 2-3 weeks:
L&T Technology Services | LTP: Rs 2,760 | Target price: Rs 3,105 | Stop loss: Rs 2,500 | Upside: 13%
In the recent past, this stock witnessed a sharp rally from Rs 1,800 to Rs 2,750 and then witnessed profit booking which took the stock towards Rs 2,300 once again.
However, it took support there at its 50-day exponential moving average on the daily charts to once again surpass the Rs 2,500 mark.
At the current juncture, the stock has been consolidating in the range of Rs 2,500-2,750 for the last two months.
It has now given a breakout above the rectangle pattern which is generally traded as the continuation pattern and points towards the next upswing in the prices.
Traders can accumulate the stock in the range of Rs 2,720-2,730 for the upside target of Rs 3,105.
The stock has been consistently moving higher on charts with the formation of higher highs and bottoms.
Besides, it is holding well above its short and long-term moving averages on the daily and weekly charts as well.
At the current juncture, the stock has given a fresh breakout above its recent high of Rs 345 with a breakout above the ascending triangle pattern visible on short-term charts.
Traders can accumulate the stock in the range of Rs 341-346 for the upside target of Rs 386.
Aarti Industries | LTP: Rs 1,298.25 | Target price: Rs 1,453 | Stop loss: Rs 1,180 | Upside: 12%
After testing a 52-week high of Rs 1,365.90 in January 2021, this stock slipped back sharply towards the Rs 1,125 level due to profit-booking at higher levels.
However, it took support at its 50-day exponential moving average on the weekly interval and made a V-shape recovery, reclaiming Rs 1,250 level.
At the current juncture, the stock has once again given a fresh breakout above Rs 1,280 level after consolidating in the range of Rs 1,200-1,260 for almost two weeks.
The breakout can be witnessed above the ascending triangle pattern along with positive divergences on secondary oscillators which suggests the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 1,285-1,295 for the upside target of Rs 1,453.
(The author is Senior Technical Analyst at SMC Global Securities)
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