The Nifty50 sees support at 18,244 followed by a profit-booking, and 18,133–18,080 as the next critical demand zone. The buy-on-dip texture is likely to continue until the index trades above the 18,080 level.
However, it has to reclaim its 20-DMA (day moving average) of 18,540 to nullify the bearish setup. On the downside, if it slips below 18,080, then we can expect a trend reversal.
The Bank Nifty is holding its 20-DMA on a closing basis, and 42,950–42,735 is the next demand zone. On the upside, the 9-DMA of 43,600 is a critical hurdle; above this, we can expect fresh momentum, while if it slips below the 42,735 level, then we may see any meaningful correction.
Here are three buy calls for next 2-3 weeks:
Speciality Restaurants: Buy | LTP: Rs 234 | Stop-Loss: Rs 210 | Target: Rs 284 | Return: 21 percent
The counter has broken a trend-line resistance on the daily chart and has a strong bullish setup. It has retested its previous breakout level of Rs 188 after hitting a fresh all-time high.
On the longer timeframe, it has witnessed a breakout of a triangle formation pattern with huge volume. The overall structure of the counter looks lucrative, as it is trading above all of its moving averages.
On the higher side, Rs 240-242 act as susceptible levels; above this, we can expect a long move towards Rs 280+ in the shorter to longer timeframe, while on the lower side, Rs 210 serves as an important support during any correction.
Heritage Foods: Buy | LTP: Rs 369.3 | Stop-Loss: Rs 337 | Target: Rs 434 | Return: 17 percent
The counter is witnessing a breakout of Inverse Head & Shoulder pattern formation in the long-term timeframe. It is coming out of long-term consolidation on the daily chart. The breakout is led by strong volume and has hit above the breakout level after 2 months.
On the plus side, Rs 400 represents an immediate barrier; above this, we can expect a move towards Rs 430+.
On the downside, Rs 340 is a strong demand zone, and below this, Rs 337 is the next important support.
Confidence Petroleum: Buy | LTP: Rs 86 | Stop-Loss: Rs 77 | Target: Rs 104 | Return: 21 percent
The counter is in a classical up move, as it has given a breakout of long consolidation in the last trading session on robust volumes and surged above all the important simple moving averages, indicating inherent strength in the counter.
The stock will likely witness a strong follow-up move till Rs 100, which will act as a psychological level; once it breaks Rs 104, the next target in the shorter time frame.
On the downside, a cluster of moving averages around Rs 77 acts as a strong support.
