The market ended the day on a strong note on December 26, driven by robust performances from Reliance Industries, HDFC Bank, and Kotak Mahindra Bank. The Sensex recorded a gain of 230 points, closing at 71,337, while the Nifty surged by 92 points, reaching 21,441. Nifty Bank saw an increase of 233 points, closing at 47,725, and the Midcap index registered a substantial gain of 293 points, closing at 45,388.
Technically, the Nifty encountered profit-taking while approaching the 21,500 levels. Although it demonstrated a strong recovery from the 21,000 level, it is crucial for the bullish momentum to resume that the 21,500–21,600 supply zone is breached. Currently, the market landscape is defined by the 20,900–21,600 range.
In the case of Bank nifty, the resistance is observed in the 48,000–48,200 zone, with potential strength building above it in the 48,500–48,800 range. On the downside, a robust demand zone lies within the 47,000–46,800 range.
Here are three buy calls for next 2-3 weeks:
JB Chemicals and Pharmaceuticals: Buy | LTP: Rs 1,618 | Stop-Loss: Rs 1,490 | Target: Rs 1,814 | Return: 12 percent
The stock has recently broken out of a triangle formation with significant volume support, establishing a solid base at approximately Rs 1,400. The stock's overall structure appears promising, as it is trading above key moving averages.
The MACD (moving average convergence divergence) indicates ongoing strength, and the RSI (relative strength index) momentum indicator is also in positive territory.
Looking ahead, the Rs 1,700 levels serve as a crucial psychological barrier; a breach beyond this point could potentially lead to a near-term target of Rs 1,800 or higher. On the downside, initial support is anticipated around Rs 1,490.
India Pesticides: Buy | LTP: Rs 370 | Stop-Loss: Rs 338 | Target: Rs 424 | Return: 14 percent
The counter has broken above a horizontal resistance level that had been in place for several days. The breakout was accompanied by strong volume, which adds confirmation to the validity of the breakout. The counter has surpassed its IPO listing high of Rs 368. The overall structure of the counter is very lucrative, as it is trading above all its important moving averages.
On the upside, rs 400 is an immediate resistance area; above this, we can expect a run-up towards Rs 420+ levels in the near term. On the downside, Rs 338 is major support in any correction.
Kalyan Jewellers India: Buy | LTP: Rs 343.30 | Stop-Loss: Rs 310 | Target: Rs 390 | Return: 14 percent
The counter is in an awesome uptrend with a breakout of a triangle formation with strong volume. The overall structure of the counter is very lucrative, as it is trading above all of its important moving averages.
On the higher time frame, there is a breakout of a bullish flag formation, which suggests much more potential upside in this counter. It has retested its previous breakout level of Rs 300 after hitting a fresh all-time high.
The momentum indicator RSI is positively poised, whereas MACD is witnessing a centerline crossover on the upside.
On the higher side, Rs 360 is acting as an important psychological level; above this, we can expect the level of Rs 390+ in the near-short term, while on the lower side, Rs 310 will act as a major support during any correction.
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