09 May , 2024 By : Debdeep Gupta
The Nifty 50 remained volatile throughout the day on May 8. However, the short-term trend appeared weak as the index remained below the critical moving average, 21EMA (exponential moving average), on the daily timeframe.
In the near term, the sentiment may continue to weaken as long as it stays below 22,400. On the downside, the index might decline towards 22,150.
The BankNifty index encountered a volatile trading session during the expiry day, highlighting the ongoing struggle between bulls and bears. The next significant support level for the index is positioned at 47,770, coinciding with the 50EMA.
On the upside, immediate resistance lies at 48,250. A decisive breach above this level could propel the index towards 48,400-48,500, where Call writing activity is evident.
Here are three buy calls for the next 2-3 weeks:
Welspun Corp: Buy | LTP: Rs 590 | Stop-Loss: Rs 575 | Target: Rs 620/645 | Return: 9 percent
The stock is exhibiting a robust uptrend, characterized by consistent higher highs and higher lows on the daily chart. Bulls have shown significant activity on dips, supported by volume-based buying.
The stock finds support at its 20DMA (days moving average), currently situated at Rs 569, serving as a cushion for bullish momentum. Moreover, the momentum indicator RSI (relative strength index) is poised to surpass the 60 mark, indicating a potential acceleration in momentum.
Triveni Engineering: Buy | LTP: Rs 355 | Stop-Loss: Rs 335 | Target: Rs 390/410 | Return: 15.5 percent
After witnessing a breakout from a falling trendline on the daily chart accompanied by a sharp surge in volumes, the stock has retraced to retest its support level. Notably, it has encountered volume-based buying activity, signaling bullish participation.
Additionally, the positive crossover on the momentum indicator RSI confirms a buy signal, suggesting potential upward momentum in the stock.
Motherson Sumi Wiring India: Buy | LTP: Rs 69 | Stop-Loss: Rs 65 | Target: Rs 74/80 | Return: 16 percent
The stock recently formed a Bullish Engulfing candle, a bullish reversal pattern, at a significant support zone. This reversal candle was accompanied by strong volumes, indicating robust buying interest.
Additionally, the stock is on the verge of breaking above its 20-day moving average, currently positioned at Rs 70, which could further reinforce the bullish sentiment.
Moreover, early signs of reversal on the momentum indicator RSI suggest that momentum is likely to strengthen in the near term, potentially driving the stock's upward movement.
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