Bulls made a strong comeback in the Indian market as the equity benchmark Sensex hit its all-time high of 53,057 on June 22, while Nifty remained just short of retesting its record high.
Banking counters witnessed sluggish moves while the auto sector gave some momentum to the market.
On the technical front, Bank Nifty is facing a strong hurdle in the zone of 35,200-35,500. We expect the banking sector to gather some momentum in the upcoming sessions.
The market is likely to remain in the bullish territory as long as Nifty is holding above 15,500.
We can expect some volatility this week as we are heading towards the June series futures & options expiry.
Traders need to keep a strong gauge on rollover data to the July series for further cues.
Technically, the level of 16,000 would act as a key psychological level for Nifty, above which, we could witness the next round of buying momentum which could take the market towards 16,250.
Here are three buy calls for the next 2-3 weeks:
Britannia Industries | LTP: Rs 3,650 | Target price: Rs 4,010 | Stop loss: Rs 3,420 | Upside: 10%
In the recent past, this stock slipped towards the Rs 3,370 level from Rs 3,850 in a short span of time. It went well below its 200-day exponential moving average on the daily charts.
However, it took support at its 100-day exponential moving average on the weekly interval and bounced back sharply to regain momentum above the Rs 3,600-level.
The stock is now well-placed above its long-term moving averages, forming rounding bottom patterns on the daily charts.
Additionally, a 'W' pattern formation, which is considered a bullish pattern, can also be witnessed on the charts.
Info Edge (India) | LTP: Rs 4,857 | Target price: Rs 5,440 | Stop loss: Rs 4,475 | Upside: 12%
This stock formed a triple bottom pattern around Rs 4,250 level and bounced back sharply above Rs 4,800 after taking support at its 200-day exponential moving average on the daily interval.
It has been fluctuating in a rising channel with the formation of higher high and higher low.
At the current juncture, rising volumes with price action suggest the next upswing in prices as the stock is on the verge of a fresh breakout above the key psychological level of Rs 5,000.
The positive divergences on secondary oscillators suggest the strength in the current trend.
Sun TV Network | LTP: Rs 547.50 | Target price: Rs 616 | Stop loss: Rs 495 | Upside: 13%
Since February, this stock has been trading in a broader range of Rs 460-560 along with multiple supports on the downside at its medium and long-term moving averages.
At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and given a breakout above the neckline of the pattern formation.
Moreover, on the short-term charts, the stock has given breakout above the ascending triangle pattern.
The rising volumes along with rising prices suggest strength in the current breakout which could move the stock much higher from the current levels.
(The author is Senior Technical Analyst at SMC Global Securities)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.