Now, 16,800 would act as strong resistance for Nifty on the higher side while bias is likely to remain in favour of bulls in the upcoming sessions, said Shitij Gandhi of SMC Global
August 25, 2021 / 07:28 AM IST
Nifty reclaimed the 16,600-mark on a closing basis on August 24. Recovery in the market was led by metals, banking and pharma counters.
On the derivatives front, Call writers covered their short positions, while Put writers added hefty open interest at 16,500 and 16,600 strikes.
Now, 16,800 would act as strong resistance for Nifty on the higher side while bias is likely to remain in favour of bulls in the upcoming sessions.
The banking index is facing a strong hurdle in the range of 36,000-36,300, above which, the index could extend its journey towards 37,000 level in the coming weeks.
Here are three buy calls for the next 2-3 weeks:
Britannia Industries | LTP: Rs 3,812 | Target price: Rs 4,300 | Stop loss: Rs 3,500 | Upside: 13%
Last week, this stock tested its 52-week high of Rs 3,967.50. However, in the last two sessions, it has retraced towards Rs 3,800 level due to profit booking at higher levels.
On the technical front, this stock has formed a W pattern on the broader charts after forming a double bottom pattern around the Rs 3,400 level, below its 200-day exponential moving average.
Traders can accumulate the stock in the range of Rs 3,800-3,815 for the upside target of Rs 4,300.
SBI Life Insurance Company | LTP: Rs 1,160.30 | Target price: Rs 1,295 | Stop loss: Rs 1,070 | Upside: 12%
This stock has been moving in a rising channel pattern on the daily and weekly charts while maintaining its uptrend with the formation of higher highs and higher bottom patterns.
On the short term charts, this stock made a double bottom pattern around Rs 1,100 and gave a breakout above the Rs 1,150 level.
It is holding above its short and long-term moving averages and pointing towards the continuation of its trend from the current levels.
Traders can accumulate the stock in the range of Rs 1,150-1,160 for the upside target of Rs 1,295.
HDFC Bank | LTP: Rs 1,558 | Target price: Rs 1,752 | Stop loss: Rs 1,440 | Upside: 12%
For nearly the last three months, this stock has been consolidating in a broader range of Rs 1,400-1,550 with prices consistently holding above their 200-day exponential moving average on the daily interval.
This week, it has given a fresh breakout above the Rs 1,550 level after a prolonged consolidation along with marginally higher volumes.
Additionally, it has given a breakout above the neckline of an inverted head and shoulder pattern.
Traders can accumulate the stock in the range of Rs 1,550-1,560 for the upside target of Rs 1,752.
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.
Shitij Gandhi is a senior technical analyst at SMC Global Securities