In the medium term, Nifty has not been able to sustain only above 15,962. Rather, it has also created a higher high and higher low pattern. On the options front, (September 2021 expiry) 16,500 is witnessing the highest call open interest. On the put side, the highest open interest is linked at 17,200. Looking at this, we think that Nifty will be seen working in the big range of 16,500-17,200. The RSI on the weekly time frame is forming above the 50 level and it is showing an upside bias towards the overbought level. Which is an indication that the bulls are trying to take the reins of the market in their hands.
After a long consolidation, Nifty is also now looking to move upwards. This uptrend in the market is expected to continue. Very soon we can see Nifty crossing the 17,000 level. If Nifty crosses the level of 17,000 then we can see it going towards the level of 17,799 also. On the downside, 16,162 will act as an important support for Nifty. If this level breaks down, then it can see us going towards 15,900.
Today’s three calls in which there can be huge earnings in 3-4 weeks
Hindustan Aeronautics (HAL) | Buy this stock with a stop loss of Rs 1,150 for a target of Rs 1,520. An upside of 18 per cent is possible in 3-4 weeks.
Escorts | LTP: Rs 1,345.30 | Buy this stock with a stop loss of Rs 1,270 with a target of Rs 1,570. An upside of 17 per cent is possible in 3-4 weeks.
HDFC Bank | LTP: Rs 1,555.10 | Buy this stock with a stop loss of Rs 1,530 for a target of Rs 1,733. An upside of 11 per cent is possible in 3-4 weeks.
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