Hot Stocks | BHEL, BEL & Ajanta Pharma top buys; here’s why

The Nifty50 for the past 2 weeks has been hovering around the 20-week SMA, after facing rejection near the 15,050 mark. On the options open interest front (12th May 2021 expiry), huge participation and open interest addition are seen in the 14500 Puts.

On the call side, participation is seen in the 15000 call contracts. Thus, going ahead, we can expect the broader range of the Nifty to be between 14500-15000 levels.

On the indicator front, the RSI plotted on the weekly time frame can be seen going flattish, pointing towards the ongoing tug of war between the bulls and the bears.

Going ahead the 15000-15050 will act as a key resistance level, If the prices break above the 15050 marks, we might see the index move higher towards the 15292-15300 (Resistance cluster level).

On the downside, the 14400 (Multiple touchpoint) is the level to watch out for, if the index manages to move below this level, we might see the index move lower towards the 14230 (23.8% retracement level of the rise from 10790-15431) mark and eventually towards the 14151 (3 week low).

To sum it all up, the index seems to be consolidating, we expect the range to be 14400-15000 levels.

Here is a list of stocks for the next 3-4 weeks:

BHEL for the past 3 weeks has been forming a higher high higher low pattern after testing a low of 43.

On 5th May 2021, the prices have tested a fresh 52-week high. The up-move was backed by above-average volume, indicating participation as the prices move higher.

On the indicator front, the RSI plotted on the daily and weekly time frame can be seen placed above the 50 mark and moving higher, indicating the presence of momentum in the bullish trend.

Going ahead the 58 (Multiple touchpoint level) will act as a key resistance level, if the prices manage to break above this level, we might see the prices move higher and test the 66 (78.6% extension level of the rise from 26.95-56.50 projected from 43) and eventually towards the 72 (100% extension level of the rise from 26.95-56.50 projected from 43).

The key level to watch for on the downside are 52 (4 weeks high) followed by 42 (recent swing low). Currently, the stock seems to be witnessing a price volume break out, we expect the prices to move higher and test the 66 followed by 72 mark.

BEL for the past couple of weeks has been bouncing off the 20-Day SMA and moving higher. On 5th May 2021, the stock gained momentum and tested a fresh 7-week high.

The up-move was backed by rising volume, indicating participation as the prices move higher. On the indicator front, the RSI plotted on the weekly and daily time frame can be seen placed above the 50 mark and moving higher, indicating the presence of momentum in the bullish trend.

Going ahead, we can expect the prices to move higher and test the 143 (Multiple touchpoint level) followed by 154 (March 2021 high) and eventually towards the 171 (Multiple touchpoint level).

The key level to watch for on the downside is 129 (20 Day SMA) followed by 115 (recent swing low).

The price action and the technical parameters mentioned above all point towards the possibility of the prices moving higher and testing the 143 marks, if the prices breach above this level, we can expect further up move towards 154.

Our bullish view will be negated if the prices move below 129. If the prices manage to sustain below this level, we might see the stock move lower towards the 115 marks.

Ajanta Pharma for the past 4 weeks has been forming a higher high higher low pattern.

On the daily time frame, we can see that the stock gained momentum and tested a 52-week high on 5th May 2021, this up move was backed by rising volume indicating participation as the prices moved higher.

On the indicator front, RSI plotted on multiple time frames is placed above the 50 levels and is moving higher, indicating the presence of strong bullish momentum.

Going ahead the key resistance is placed at 2125 (Sept 2016 high), followed by 2274 (127% extension level of the rise from 1424.50-1884 projected from 1690).

The key level to watch for on the downside is 1860 (multiple touch point) followed by 1690 (Recent swing low).

Looking at the prices action and the technical parameters mentioned above we expect the prices to move higher towards 2125 followed by 2274.

Our bullish view will be negated if the prices move below 1860, beyond which we might see the prices move lower and test the 1690 mark.

Disclaimer: The views and investment tips expressed by the investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.