The Nifty has been trading in a downward-sloping channel formation in the range of 17,100-16,900 for the last three trading sessions. This rangebound movement is likely to continue for now.
The 17,220 level is the next hurdle on the upside, while 16,800 is a key support on the downside. However, if it slips below the 16,800 mark, then we can expect a fresh round of weakness.
Bank Nifty is also trading rangebound, where 39,770 and 40,080 are the resistance levels. On the downside, 39,200, 38,900, and 38,600 are support levels. It has to cross its 20-DMA (days moving average) of 40,080 for any meaningful strength.
The market is extremely oversold as short exposure of FIIs in index futures is at 83 percent; therefore, we can expect a powerful short-covering rally if the global market and US banking system will stabilize.
Here are three buy calls for next 2-3 weeks:
Glenmark Pharmaceuticals: Buy | LTP: Rs 450 | Stop-Loss: Rs 417 | Target: Rs 514 | Return: 14 percent
The counter is witnessing multiple bullish setups where we can see a formation of an Inverse Hand and Shoulder along with a bullish Cup and Handle formation. It is building a strong base in a cluster of 20, 50, and 100 SMA (simple moving average).
On an immediate basis, Rs 454 is the horizontal resistance line; above this, we can expect a rally towards Rs 500 levels.
On the downside, Rs 420 is immediate and strong support. Momentum indicators are positively poised to support the current strength of the trend.
Career Point: Buy | LTP: Rs 222.50 | Stop-Loss: Rs 200 | Target: Rs 264 | Return: 19 percent
The counter has witnessed a breakout of 10-year-long consolidation as well as triangle pattern formation on the weekly chart with strong volume. The structure of the counter is lucrative, as it is trading above each of its significant moving averages.
MACD (moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
On the upside, if Rs 240 is an immediate hurdle, we can expect a move towards the Rs 260+ levels. On the downside, Rs 200 will act as a strong demand zone.
NCC: Buy | LTP: Rs 102.80 | Stop-Loss: Rs 95 | Target: Rs 118 | Return: 15 percent
The counter is in a classical uptrend and witnessed a breakout out of an ascending triangle formation, then retested its breakout level and resumed its uptrend. The breakout coincides with rising volume and it manages to sustain above breakout level despite weakness in the broader market.
It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, a cluster of moving averages around Rs 95 level will act as a strong support level.
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