- Date : 03/11/2022
- Read: 3 mins
We witnessed a Falling channel breakout in HDFC AMC, and it has reclaimed the pattern's upper band. It has a bullish set-up now, along with its immediate support in the counter.
The Nifty opened in the green and was in the red upon closing amid a sideways market movement and volatility in the global markets. It formed a bearish candle on the daily chart after it took resistance at 18,175. Nifty made higher lows and higher highs hourly and closed over 18.050, indicating a timid market. Here are two buy calls that will help you move forward for the following two to three weeks. Let's dive in!
Also Read: These 6 stocks can give you an excellent short-term return.
HDFC Asset Management Company
Buy
Target: Rs. 2,305
Return: 9.5%
LTP: Rs. 2,106
Stop-Loss: Rs. 2,000
The stock has recovered after a long bearish trend from its supply zone. The stock experienced a new low and bounced back from the Rs. 1,702 level. It recently witnessed a Falling channel breakout and reclaimed the pattern's upper band. It indicated its bullish set-up and immediate support in the counter.
The price has moved above its 21 EMAs (exponential moving averages, with Bullish Engulfing candlesticks indicating bullishness. There has been a falling line breakout, and there can be a counter reversal.
You can look to take a long position at CMP of Rs. 2,106 or at a fall till Rs. 2,070. Its upside can be around Rs. 2,205. However, the bullish view can turn bearish if it breaks below Rs. 2,000's support level.
Also Read: Read this if you are scared of short-term market volatility.
Garden Reach Shipbuilders & Engineers
Buy
Target: Rs. 540
Return: 9.3%
LTP: Rs. 494.20
Stop-Loss: Rs. 470
We saw the stock make a sharp upward movement on the daily chart, and it made a Rs. 486 high recently. The stock witnessed a minor consolidation, and the price now gives a Bullish Pennant pattern along with a spurt volume which shows a consistent bullish trend. Its bullish strength also comes from its price settling below the Bollinger band once it tested the middle band. The stock closed higher and formed Bullish candlesticks in the last trading session.
You can look to take a long position at Rs. 494.20 or at a fall till Rs. 485. Its upside can be around Rs. 540. However, the bullish view can turn bearish if it breaks below Rs. 470's support level.
Also Read: These 3 stocks might provide 10-22% return in the short term.
India VIX has increased to 16.74 from 16.13 under the 200 EMA. 18,100 is Nifty's maximum pain, and the Nifty Put Call ratio stands at 0.96. Bank Nifty PCS stands at 0.68. Nifty's important support levels stand around 18,000 and 17,750. The resistance levels stand at 18,100 and 18,400. F&O data suggests that the short buildup increased ITM calls.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
