Karan Pai, Technical Analyst, Gepl Capital
Over the past two weeks, Nifty50 has moved lower, the spee ordering profit that has been going on for several sessions pushes lower prices to 20 weeks high school (simple moving average), where prices seem to have support found.
Price action in a shorter time frame seems to be very worry, indicating the possibility of prices moving within reach.
In the Open Flower option (December 30, 2021), the addition of the highest open flower was seen in 17,900 calls and good participation seen in 17,000 contracts. Thus, we can expect a broader index range to 17,000-17,900.
Looking at the graph, we believe that for the upcoming session, high school 20 weeks (17,200) will act as a make-or-break level. If the price breaks below the 17,200 sign, we might see lower moving prices to the psychological level of 17,000.
On the upper side, 17,900, 20 days of high school will be a level to watch in the coming week. If the price breaks this level, we might see the price moving towards the sign of 18,400-18,600.
Here are three buying calls for the next 2-3 weeks:
Zee Entertainment Enterprises: Buy | LTP: RS 334.40 | Stop Loss: RS 300 | Target: RS 405 | Back: 21.1 percent
Zee Entertainment for the past few weeks has been moving in the range despite the benchmark index (Nifty and Sensex) watching earnings. On November 22, this stock tested low RS 292, after which he witnessed sharp reflections, and prices had formed a higher high pattern since then.
In the indicator front, RSI (relative strength index) which is plotted on weekly chart can be seen to move higher to overbought levels, showing an increase in bullish momentum in price.
Looking at the price action and technical parameters mentioned above, we hope Zee to move higher immediately towards the highest swing before Rs 363, after that we might see the RS 405 test price.
Zee seems to be a good purchase candidate with the upside down RS 363 and RS 405 target. We recommend the Stop Loss level from RS 300 for this setting.
Adani Enterprises: Buy | LTP: RS 1,755.15 | Stop Loss: RS 1,600 | Target: RS 2,000 | Back: 14 percent
After a long consolidation of about 25 weeks, the price finally managed to get momentum and rest it above the previous swing of Rs 1,716.
Bollinger Bands plotted on weekly charts can be seen developing after a little contraction, showing an increase in volatility because the price exits long consolidation.
The RSI plotted on a weekly time frame can be seen to move higher to the level purchased after forming a bullish hinge near the 50 sign, showing an increase in bullish momentum in the trend.
Price action shows the possibility of increasing momentum and the price of moving towards the highest lifetime fresh.
Investors can accumulate adani companies at this time and hold on to Rs 2,000 and Rs 2,189 and maintain a stop loss at Rs 1,600 on the basis of closure.
Raymond: Buy | LTP: RS 620.40 | Stop Loss: RS 580 | Target: RS 707 | Back: 14 percent
Raymond has moved higher in a way that was channeled well since October 2020. This week, prices ride momentum and violated above the trend on the channel. This is supported by the highest volume since August 2010.
Momentum indicators and technical parameters indicate the possibility of higher prices to the RS 707 immediately; If this level is violated, we might see the price moving to the RS 838 level in the end.
Our bullish view will be negated if the price breaks below RS 580. We also recommend this level to be a strict level of cessation.
