The Nifty50 has made a smart rebound from 15,180 levels, only to plummet by more than 1,600 points from 16,800 levels. Looking at the derivative data, FIIs’ long position in the Index future has risen to 15% from a multi-year low of 11%, while the Put-Call ratio has also risen to 0.81, indicating that the market is oversold.
Technically, 15,800-15,850 is a major vulnerable zone; above this, we may anticipate 16,000 in the short term, while on the downside, if the Nifty falls below 15,400, the next support level is 15,180.
The derivative data indicates that the market is somewhat oversold, which might aid in a short-covering recovery.
In Tuesday’s trading session, Bank Nifty crossed its psychological level of 33,000; nevertheless, 33,800 is an immediate and significant supply level; above this, 34,000 will be the next resistance level.
33,000 is the primary demand level on the downside; below that, 32,250-32,000 will be the next support levels.
Here are three buy calls for next 2-3 weeks:
Elecon Engineering: Buy | LTP: Rs 259.30 | Stop-Loss: Rs 224 | Target: Rs 294 | Return: 13 percent
The counter is producing a Bullish Flag pattern, which is a typical bullish setting. It is now trading above its pivotal moving averages. The present strength of the trend is being supported by momentum indicators.
On the upside, the immediate target levels are Rs 284-294, while the 50-DMA (day moving average) of Rs 230 is an immediate support level, and Rs 224 is the next demand level below this.
PVR: Buy | LTP: Rs 1,782.35 | Stop-Loss: Rs 1,672 | Target: Rs 2,000 | Return: 12 percent
The counter has broken out of a triangular pattern formation, resuming its traditional uptrend. It is staying close to its 200-day moving average, which is now at Rs 1,640.
The majority of momentum indicators are in the positive zone, indicating that this counter will continue to rise.
J Kumar Infraprojects: Buy | LTP: Rs 279.5 | Stop-Loss: Rs 240 | Target: Rs 336 | Return: 20 percent
On the lengthier period, the counter has a solid bullish setup, with a breakout of a Descending triangle breakout. After setting a new 52-week high, it has retested its earlier breakout level of Rs 240.
On the upside, Rs 300 is an immediate resistance level; over this, we may expect a near-term run-up to Rs 336 levels. On the downside, if there is a drop, Rs 240 is a big support level.