Volatility gripped the Indian market once again as Nifty swung in the range of 14,900 to 15,050 as the tug of war among Option writers at 15,000 strike kept the market in consolidation mode.
On the derivative front, Call writers were seen adding hefty open interest at 15,000, 15,100 and 15,200 strikes which point towards limited upside in the index as of now.
On the technical front, the zone of 14,700-14,600 is a strong support area for Nifty.
The secondary oscillators suggest that the market is likely to face volatile moves in the upcoming sessions with some consolidation within a broader range of 14,700-15,200.
Stock-specific action is expected to be on the radar with bias likely to remain in favour of the bulls as long as Nifty holds above 14,600 level.
Here are three buy calls for the next 2-3 weeks:
Hindustan Unilever | LTP: Rs 2,244.05 | Target price: Rs 2,420 | Stop loss: Rs 2,120 | Upside: 8%
After testing the level of Rs 2,450 in January 2021, this stock slipped back sharply towards Rs 2,150 on profit booking at higher levels.
However, it took support at its 200-day exponential moving average (EMA) on the daily interval and bounced back sharply above its short-term moving averages.
At the current juncture, this stock has made a double bottom pattern around Rs 2,120 and an inverted head and shoulder pattern on the short-term charts.
This week, a fresh breakout above the key resistance level of Rs 2,240 can be witnessed with a breakout above the neckline of pattern formation.
Traders can accumulate the stock in the range of Rs 2,235 - Rs 2,245 for the upside target of Rs 2,420.
HCL Technologies | LTP: Rs 1,007.25 | Target price: Rs 1,100 | Stop loss: Rs 940 | Upside: 9%
After forming a double bottom pattern around Rs 900, this stock has been consistently moving higher on charts with the formation of higher highs and higher bottoms.
It is holding well above its short and long-term moving averages on daily and weekly charts as well.
At the current juncture, the stock has once again given a fresh breakout above its key psychological resistance level of Rs 1,000 with a breakout above the neckline of inverted head and shoulder pattern visible on daily charts.
Traders can accumulate the stock in the range of Rs 1,000- Rs 1,010 for the upside target of Rs 1,100.
Datamatics Global Services | LTP: Rs 124.50 | Target price: Rs 141 | Stop loss: Rs 113 | Upside: 13%
After witnessing a strong rally from Rs 80 to Rs 125 in December 2020, this stock has been consolidating in a broader range of Rs 100- Rs 125 since then.
It is holding well above its short and long-term moving averages on daily and weekly intervals.
In the previous session, this stock gave a fresh breakout after a prolonged consolidation.
The additional volumes along with price action suggest the next upswing in the prices. Traders can accumulate the stock in the range of Rs 123 - Rs 125 for the upside target of Rs 141.
(The author is Senior Technical Analyst at SMC Global Securities)
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