Vidnyan Sawant, AVP - Technical Research at GEPL Capital
On the weekly chart, prices have formed Inside Bar candlestick pattern, which indicates decrease in volatility of the prices while taking support from the 20-week SMA (simple moving average).
Prices on the daily time frame are roaming within three-day range, which again confirms the decrease in volatility.
RSI (relative strength index) on the daily timeframe is trending lower which reflects losing momentum of the index.
Looking at the overall chart pattern, we feel that the trend of the Nifty may remain sideways between 17,500 – 16,747. The index can only witness a trending phase if 17,500 is surpassed on the upside or 16,747 is breached on the downside.
Here are three buy calls for next 2-3 weeks:
Federal Bank: Buy | LTP: Rs 124.90 | Stop-Loss: Rs 109 | Target: Rs 150 | Return: 20 percent
Federal Bank, since March 2020 lows, did not get into lower high, lower low formation, which shows the bullish sentiment behind the stock.
The stock has shown a bounce on the upside after retesting the neckline of inverse head and shoulders pattern that indicates a continuation in the prior uptrend.
On the ratio charts versus Nifty, the stock seems to be a clear outperformer.
RSI plotted on the weekly timeframe is moving in sync with the price action while sustaining above 50 mark reflects strong momentum in prices.
Going ahead we expect the prices to go higher till the level of Rs 150 where the stop-loss must be Rs 109 on a closing basis.
JK Paper: Buy | LTP: Rs 395 | Stop-Loss: Rs 370 | Target: Rs 480 | Return: 21 percent
JK Paper is currently trading near its record which tells that the stock already is in strong momentum.
The trend in the stock is gradually rising, pointing towards acceleration in price trend.
Around Rs 350 levels, the stock is witnessing a change in polarity which indicates rising bullish sentiment in prices.
The stock has surpassed key moving averages of 50 & 200 day EMA (exponential moving average), confirming that the uptrend is still intact.
RSI on the daily as well as on the weekly time frame is above 50 reflecting the presence of momentum in the prices.
Going ahead we expect the prices to go higher till the level of Rs 480 where the stop-loss must be Rs 370 on a closing basis.
Borosil: Buy | LTP: Rs 431.65 | Stop-Loss: Rs 380 | Target: Rs 550 | Return: 27 percent
Borosil has started to get into Higher High, Higher Low formation which tells that the stock has shown a bounce on the upside after retesting the neckline of inverse head and shoulders pattern in October 2022 that indicates a continuation in the prior uptrend.
Prices on the daily timeframe are hovering around the Upper Bollinger band which states rising volatility in prices.
RSI on daily as well as on weekly timeframe has shown a breakout which suggests the stock has a strong momentum built-up.
Going ahead, we expect the prices to go higher till the level of Rs 550 where the stop-loss must be Rs 380 on a closing basis.
