Technical Analysis Report for Nifty and Three Buy Calls

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The Nifty index has been on a strong uptrend in the past three weeks, making a new all-time high at 20,222. However, the most recent trading week saw the index retracing some of those gains, finding support at the 50 percent Fibonacci retracement level from its surge from 19,223 to 20,222.

On analyzing the weekly charts, the index is observed to be trading below its previous week’s low. This suggests a temporary halt in its dominant uptrend. Immediate support stands at 19,605 (representing the 61.8 percent Fibonacci level), followed by a critical support level at 19,400.

On the upside, the index faces resistance at 19,878 (corresponding to a gap resistance) and then at 20,222, its recent peak.

Given the technical indicators and market sentiment, we anticipate the Nifty to oscillate within the 19,605 to 19,878 range over the next few sessions.

Three Buy Calls for Next 2-3 Weeks:

  • Havells India (LTP: Rs 1,413.35): The stock has been on an impressive ascent, demonstrating unwavering positive momentum. A recent emergence from the Symmetrical Triangle pattern underscores its persistent bullish stance. The MACD on the weekly charts is ascending steadily above the zero line, emphasising sustained upbeat momentum. Going ahead, we expect the prices to move higher till Rs 1,600 levels where the stop-loss must be Rs 1,375 strictly on the closing basis.
  • KSB (LTP: Rs 3,122.35): The stock showcases a consistent pattern of higher highs and higher lows, supported by an escalating volume trend, hinting at a substantial buildup driving the prices. In late July 2023, the stock notably broke through the Cup & Handle pattern, signaling the onset of an upward trajectory. Currently, it is trading stance above both the 12 & 26-week EMA (exponential moving average), solidifying its bullish trend. Further endorsing this positive outlook, the MACD has registered a positive crossover, emphasising the prevailing upward momentum. Going ahead, we expect the prices to move higher till Rs 3,500 where stop-loss must be Rs 2,830 closing basis.
  • Gujarat Ambuja Exports (LTP: Rs 296.80): The stock experienced a measured retracement after reaching an all-time high in mid-April 2023. Notably, the stock avoided patterns of lower highs and lower lows, reflecting an underlying bullish sentiment in its pricing. In the recent week, GAEL displayed a breakout from the Symmetrical Triangle pattern, signalling a likely continuation of its previous upward trend. Moreover, with the stock consistently trading above the 12 & 26-week EMA, there’s a reinforced confirmation of its ongoing bullish trajectory. Going ahead, we expect the prices to move higher till Rs 340 where the stop-loss must be Rs 285 on the closing basis.

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