The Nifty closed at 22,494 on 7th March with a gain of 115 points on a weekly basis.
On the weekly chart, the index has formed a small bullish candle with a lower shadow, indicating buying at support level of around 22,200.
The chart pattern suggests that if the Nifty50 crosses and sustains above the 22,600 level, it would witness buying, leading the index towards the 22,800-22,900 levels.
However, if the index breaks below the 22,400 level, it might witness selling, taking the index towards the 22,300-22,200 range.
For the week, we expect Nifty to trade in the range of 22,900-22,200 with a positive bias.The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias.
Here is a list of the top 4 trading ideas based on technical which could give a 10-12% return in the next 3-4 weeks:
Bharti Airtel: Buy| Target Rs 1285-1330| LTP Rs 1199| Stop Loss Rs 1132| Upside 10%
Bharti Airtel demonstrates a bullish breakout above the small ‘Falling Channel’ pattern at 1150 on the weekly chart, suggesting a possible continuation of the medium-term uptrend.
The breakout is confirmed by a strong bullish candle, indicating a positive bias in stock price movement.
It maintains support above the 23% Fibonacci retracement level of the rally from 735 to 1200 at 1098, forming a medium-term base for further potential upward movement.
The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.
The above analysis indicates an upside of 1285-1330 levels. The holding period is 3 to 4 weeks.
Bank of India: Buy| Target Rs 156-164| LTP Rs 146| Stop Loss Rs 134| Upside 12%
Bank of India demonstrates a bullish breakout above the ‘Descending Triangular’ pattern at 140 on the weekly chart, signaling the potential continuation of a post-consolidation rally.
It maintains support above the 38% Fibonacci retracement level of the rally from 86 to 156 at 129, forming a medium-term base for further potential upward movement.
The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above upward sloping trendline, signaling positive bias.
The weekly strength indicator RSI is in a bullish mode indicating a positive bias. The above analysis indicates an upside of 156-164 levels. The holding period is 3 to 4 weeks.
Bharat Electronics Ltd: Buy| Target Rs 233-242| LTP Rs 215| Stop Loss Rs 199| Upside 12%
On the weekly chart, BEL has broken out of a small ‘Consolidation’ zone between 197-177, accompanied by a robust bullish candle at the end of February.
The stock continues its upward momentum after the breakout and is expected to sustain its momentum.
It is trending within a medium-rising channel, having recently found support at the lower band and is now poised to move towards the upper band of the channel.
The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias. It is forming a higher high-low confirming an upward price moment.
The above analysis indicates an upside of 233-242 levels. The holding period is 3 to 4 weeks.
Pidilite Industries Ltd: Buy| Target Rs 3096-3210| LTP Rs 2865| Stop Loss Rs 2685| Upside 12%
On the weekly chart, Pidilite Industries has broken out of a two-and-a-half-year consolidation phase, marked by a ‘Symmetrical Triangular’ pattern at the 2800 level, implying a continuation of the medium-term uptrend.
An increase in volume activity during the breakout suggests a surge in participation, signalling strong interest in the stock’s upward movement.
The stock is maintaining its position above the 20, 50, 100, and 200 Simple Moving Averages (SMA), indicating a positive bias in its price trend.
The weekly Relative Strength Index (RSI) is in bullish mode and holding above its reference line suggesting a positive bias in a stock.
The above analysis indicates an upside of 3096-3210 levels.
(The author is SVP – Technical and Derivatives Research, Axis Securities)
