On the monthly charts, it has consistently formed higher highs and higher lows over the past six months.
Given the prevailing chart patterns, a sustained bullish trend is expected for the longer term.
Maintaining its position above key moving averages such as the 20-week and 50-week EMAs, and with the RSI consistently above 60 across various timeframes, BHEL exhibits strong bullish momentum.
Looking ahead, it's reasonable to anticipate continued upward movement in the stock, with a potential target price of Rs 326.
It's advisable to set a stop-loss at Rs 249 on a closing basis to manage risk effectively.
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By Vidnyan Sawant, HOD - Research at GEPL Capital
The Nifty index is demonstrating robust bullish momentum across various timeframes. On the monthly charts, it has consistently formed higher highs and higher lows over the past six months. The weekly charts indicate strong support at the 13-week EMA (exponential moving average), with a recent fill of a falling gap suggesting a bullish sentiment.
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Additionally, on the daily charts, the index is contained within an upward sloping channel, rebounding from the lower edge with support and maintaining a trajectory above the five-day high.
Key technical indicators, notably the relative strength index (RSI), depict optimistic readings above 60 on both weekly and monthly timeframes, signalling positive momentum for the medium to long term.
Resistance levels are identified at 22,775 followed by 23,170, and 23,450, with notable support levels at 22,200 and 22,000.
Given the prevailing chart patterns, a sustained bullish trend is expected for the longer term. Consequently, it is advisable to consider buying opportunities at the current market price, targeting potential upside levels ranging from 22,775 to 23,170.
To manage risk effectively, it is recommended to implement a strict stop-loss strategy at 22,200 on a closing basis.
Here are three buy calls for the next 2-3 weeks:
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Container Corporation of India: Buy | LTP: Rs 1,005 | Stop-Loss: Rs 922 | Target: Rs 1,254 | Return: 25 percent
Container Corporation of India (CONCOR) has exhibited a robust price structure, currently trading near its all-time high. After experiencing a polarity shift in March 2023, marked on the chart, the stock has maintained an upward trajectory, forming higher highs and higher lows.
Following a rally, the stock underwent mean reversion at the 20-week exponential moving average (EMA), coinciding with the Supertrend study. Notably, the prior resistance from November 2022 acted as support in March 2024, further propelling the stock's upward momentum.
The RSI indicates a bullish crossover, with readings consistently above 60 across all timeframes. This signals an acceleration in momentum, with the stock respecting the Supertrend indicators, reinforcing the notion that the trend is supported by strong momentum.
Moreover, when comparing CONCOR against the Nifty on a ratio chart, a rising structure is evident. This suggests that CONCOR has been outperforming the broader market index, indicating sustained strength relative to the overall market.
Going ahead, we expect the prices to go higher till the level of Rs 1,254. The bullish view will be negated if we see prices sustaining below Rs 922 level.
Bharat Dynamics: Buy | LTP: Rs 2,060 | Stop-Loss: Rs 1,890 | Target: Rs 2,570 | Return: 25 percent
Bharat Dynamics (BDL) is currently trading at its all-time high, showcasing robust momentum in its price structure since a gradual upward trend that commenced in October 2020. On a weekly scale, the stock recently broke out of a consolidation phase lasting approximately three months, with strong volume participation signalling the continuation of the trend.
Furthermore, BDL maintains its position above significant moving averages such as the 20-week and 50-week EMAs, indicating a positive trend. The RSI study exhibits a bullish crossover, with the range shift observed further reinforcing the continuation of bullish momentum.
Moreover, when comparing BDL against the Nifty on a ratio chart, sustained outperformance is evident as the ratio line continues its upward trajectory.
Going ahead, we expect the prices to go higher till Rs 2,570. The bullish view will be negated if we see prices sustaining below Rs 1,890 level.
BHEL: Buy | LTP: Rs 272 | Stop-Loss: Rs 249 | Target: Rs 326 | Return: 20 percent
BHEL has been on a bullish trajectory since June 2022, characterised by clean higher tops and higher bottoms, indicating a strong upward trend. Notably, the stock experienced a multi-year breakout in January 2024, connecting back to 2012, and is currently trading near its 52-week high, reflecting a robust price structure.
Maintaining its position above key moving averages such as the 20-week and 50-week EMAs, and with the RSI consistently above 60 across various timeframes, BHEL exhibits strong bullish momentum.
Moreover, when comparing BHEL against the Nifty on a ratio chart, a continuous uptrend has been observed since 2022, marked by higher highs and higher lows, suggesting sustained outperformance relative to the broader market index.
Looking ahead, it's reasonable to anticipate continued upward movement in the stock, with a potential target price of Rs 326. It's advisable to set a stop-loss at Rs 249 on a closing basis to manage risk effectively.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
