Nifty snapped its six-day winning streak and slipped towards the 15,100 mark after hitting a record high above 15,250 on February 9.
Traders were seen booking profits at higher levels as IT and FMCG counters led the market fall.
On the derivatives front, a tug of war among bulls and bears was witnessed as both Call writers and Put writers added hefty open interest at 15,200 strikes.
For the upcoming sessions, the level of 15,000 would act as strong support for Nifty while 15,200-15,300 will act as an immediate hurdle.
At the current juncture, for any sharp upside towards new record highs, Nifty should give a decisive move above 15,300.
This could trigger further short-covering by Call writers which can take Nifty towards the 15,500 level as well.
Till then, we can expect some volatility in the market with stock-specific action.
Here are three buy calls for the next 2-3 weeks:
Max Financial Services | LTP: Rs 740 | Target price: Rs 825 | Stop loss: Rs 680 | Upside: 11.5%
The stock has been consistently moving higher on charts with the formation of higher bottoms.
It is holding well above its short and long-term moving averages on the daily and weekly charts.
At the current juncture, the stock is all set for a fresh breakout above its recent high of Rs 750 with the formation of inverted head and shoulder pattern on the short-term charts.
Traders can accumulate the stock in the range of Rs 735-740.
ACC | LTP: Rs 1,765.90 | Target price: Rs 1,899 | Stop loss: Rs 1,650 | Upside: 8%
After testing a 52-week high of Rs 1,814 in January 2021, the stock witnessed profit-booking at higher levels and slipped towards Rs 1,600 in a short span of time.
However, the stock took support at its 100-day exponential moving average on the daily interval and made a V-shape recovery to reclaim momentum above its short-term moving averages.
At the current juncture, the stock can be seen consolidating in the range of Rs 1,715 to Rs 1,780 from the last week which has formed a rectangle pattern on the technical charts.
The pattern is generally seen as a continuation pattern. Traders can accumulate the stock in the range of Rs 1,740-1,762 for the upside target of Rs 1,899.
ICICI Lombard General Insurance Company | LTP: Rs 1,522.35 | Target price: Rs 1,630 | Stop loss: Rs 1,390 | Upside: 7%
After testing a 52-week high of Rs 1,626.45 in January 2021, the stock slipped sharply towards Rs 1,300 due to profit-booking.
However, it took support at its 200-day exponential moving average on the daily interval and made a V-shape recovery and reclaimed the Rs 1,500 mark.
At the current juncture, the stock can be seen trading well above its short and long-term moving averages with the formation of higher highs.
The positive divergences on secondary oscillators along with price action suggest the next up-move in the prices.
Traders can accumulate the stock in the range of Rs 1,480-1,515.
(The author is Senior Technical Analyst at SMC Global Securities)
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