Shitij Gandhi
After the expiry of the June series last week, Indian market kickstarted new week on a muted note and was trading in a range.
On the technical front, Nifty was seen consolidating in the range of 10,200 to 10,400 with prices holding well above its 200-days exponential moving average on weekly charts.
On the derivatives front, call writers were seen adding hefty open interest at 10,400 and 10,500 call strike.
The data suggests that in the coming sessions, we might witness further consolidation in the index with stock-specific action.
However, the bias is likely to remain bullish and anytime a decisive move above 10,400 in Nifty could add further buying momentum which could lead a move towards 10,600 levels as well.
Here are three buy calls for the next 3-4 weeks:
After gaining momentum back above its 200-days exponential moving average on the daily interval, the stock has been consolidating in the range of Rs 2,050 to Rs 2,150 for the last one month.
At the current juncture, the stock has given a consolidation breakout above the key resistance level of Rs 2,150 along with positive divergences on the secondary oscillators which suggest next upswing in the prices, going forward.
Traders can accumulate the stock in the range of Rs 2,175-2,190.
ACC | Buy | LTP: Rs 1,335 | Target price: Rs 1,500 | Stop loss: Rs 1,220 | Upside: 12%
For over four weeks, the stock has been consolidating in the range of Rs 1,200-1,320 along with multiple supports on the downside, backed by its short-term moving averages on the daily interval.
This week, the stock has given a fresh breakout on the daily charts after a prolonged consolidation, above the key resistance level of Rs 1,320 and also above its 200-days exponential moving average.
Traders can accumulate the stock in the range of Rs 1,320-1,335.
Dabur India | Buy | LTP: Rs 467 | Target price: Rs 511 | Stop loss: Rs 430 | Upside: 9%
On the daily charts, the stock has been maintaining its uptrend and seen trading in a rising channel with the formation of a higher high and higher bottom pattern.
At the current juncture, it has formed a 'W' pattern on the daily interval and is on the verge of a fresh breakout above the key resistance level of Rs 475.
The rising volumes with a rise in prices from the last few sessions suggest a long build-up in the prices and points towards the next upswing in the coming sessions.
Traders can accumulate the stock in the range of Rs 460-465 levels.
(The author is Senior Technical Analyst at SMC Global Securities)
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