Traders should keep stock specific action on radar, as volatility is likely to grip markets in coming week.
Indian markets began this week with positive moves as bulls made a strong comeback and uplifted Nifty indices above 18,000 mark once again. Auto and energy counters outshine the markets while banking stocks remained laggard during the week.
From the derivative front, Call writers remained active at 18,100 & 18,200 strikes while Put writers added hefty open interest at 17,900 strike.
From technical front, Nifty has once again managed to close above its 20-day exponential moving average on daily charts which points towards positive bias for upcoming sessions.
We expect markets to consolidate at higher levels in coming sessions with bias likely to remain in favour of bulls. The consolidation phase can prevail within a range of 18,300-17,800 levels on the broader side. Traders should keep stock specific action on radar, as volatility is likely to grip markets in the coming week.
Here are three buy calls for next two-three weeks:
Bharat Forge: Buy | LTP: Rs 834.05 | Stop Loss: Rs 760 | Target: Rs 941 | Return: 12.8 percent
On broader charts, the stock can be seen trading in a broader range of Rs 710-820 levels since July 2021. This week stock has managed to give breakout above its key hurdle level of Rs 820 after a prolonged consolidation phase.
On short term charts, breakout above the Bullish Flag pattern can also be observed which points towards the next upside into the prices. Traders can accumulate the stock in range of Rs 825-835 levels for the upside target of Rs 941 levels with stop loss below Rs 760.
Kopran: Buy | LTP: Rs 235.70 | Stop Loss: Rs 208 | Target: Rs 270 | Return: 14.6 percent
Nearly, for the last three months, stock can be seen consolidating in a broader range of Rs 190-220 zone with prices consistently maintaining lower highs and higher lows. This week stock has witnessed a fresh breakout above the symmetrical triangle pattern visible on daily time frames.
The rising volumes along with rise in price suggests a next leg up into the prices after a breakout. Traders can accumulate the stock in range of Rs 230-235 levels for the upside target of Rs 270 levels with stop loss below Rs 208.
JK Cement: Buy | LTP: Rs 3,654.95 | Stop Loss: Rs 3,250 | Target: Rs 4,200 | Return: 14.9 percent
For the last four months, stock has been fluctuating in a broader range of Rs 3,100-3,600 levels with prices holding well above its 100 & 200-day exponential moving average on daily charts. At current juncture, the stock has given a breakout above the key hurdle level of Rs 3,600 after forming a triple bottom pattern around Rs 3,100 levels.
The pattern breakout can be observed along with hefty volumes, which suggests a long build up into the prices. Traders can accumulate the stock in range of Rs 3,600-3,655 levels for the upside target of Rs 4,200 levels with stop loss below Rs 3,250.
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