The Nifty index is currently in a consolidation phase, with 19,800-19,850 as a strong immediate supply zone and 19,700-19,600 serving as a notable demand zone.
If Nifty successfully surpasses the 19,850 levels, a potential upward movement towards 19,990 and 20,100 is anticipated. Conversely, on the downside, the 19,500 and 19,400 levels are crucial support zones.
In the case of Bank Nifty, a consolidation pattern is also observed. The 44,600 levels represent a significant immediate hurdle, coinciding with a cluster of multiple moving averages.
Further up, the critical resistance stands at 45,000. Breaching this level may trigger a substantial short-covering rally. Conversely, in terms of support, the 44,000-43,700 zone is vital for maintaining stability.
Here are three buy calls for the next 2-3 weeks:
Newgen Software Technologies: Buy | LTP: Rs 1,041 | Stop-Loss: Rs 950 | Target: Rs 1,194 | Return: 14 percent
Newgen Software Technologies is displaying classical bullish momentum, forming higher highs and higher lows over a longer timeframe. It recently witnessed a breakout from a Triangle formation. The previous swing high around Rs 960 acted as an immediate resistance level, but in the last trading session, it broke that level with strong volume, initiating a new rally towards Rs 1,100.
On the downside, the previous breakout level of Rs 960 is a critical support level, with Rs 950 serving as a strong demand zone. Momentum indicators are positively positioned to support the current trend strength.
Ion Exchange (India): Buy | LTP: Rs 606 | Stop-Loss: Rs 535 | Target: Rs 714 | Return: 18 percent
Ion Exchange (India) is witnessing a breakout from the Classical Symmetrical triangle formation with strong volumes on the daily chart. The overall structure is very bullish as it trades above its all-important moving averages, and most of the momentum indicators are also indicating a further rally in this stock.
On the downside, a cluster of moving averages is placed at the Rs 535 levels, which will act as a strong support level.
Talbros Automotive Components: Buy | LTP: Rs 1,125 | Stop-Loss: Rs 1,020 | Target: Rs 1,304 | Return: 16 percent
Talbros Automotive Components is currently in an upward trend, with a recent breakout from a Triangular pattern confirming its continuation. This breakout is supported by increased trading volume and the stock’s ability to maintain levels above the breakout point.
Furthermore, the stock is trading above crucial moving averages and showing positive momentum according to various indicators. In the event of a decline, the support level at Rs 1,050 is expected to offer significant reinforcement, followed by Rs 1,020 as the subsequent support level.
Additionally, the stock is displaying strong adherence to its 20-day moving average, indicating robust trend strength.
