The Nifty stayed in the green for the second consecutive session on August 7 to end the day with the gains of 80 points at 19,597. Primary and intermediate trend of the Nifty remained positive as the index has been holding above 50, 100 and 200-day EMA (exponential moving average). Short-term trend of the benchmark turned positive as it closed above its 5 and 20-day EMA.

On the derivative side, we have seen aggressive Put writing at 19,300-19,500 levels, which coincides with the swing low of 19,390 made on August 3. Therefore, on the downside, 19,300-19,400 could now be considered as an immediate support for the Nifty. Positional support for the Nifty is expected at 19,100, which happens to be the level derived from upward sloping trend line, adjoining major swing tops of October 2021(18,604) and December 2022 (18,887).

High of last week in Nifty is placed at 19,796 which could now act as an immediate resistance for Nifty. Above 19,796, Nifty could move towards next resistance of 19,868-19,991 for the coming weeks. Traders are advised to hold longs with a stop-loss of 19,300 in Nifty on the closing basis.

The broader market indices like midcap and small caps have continued their outperformance during the recent corrective phase of the Nifty. We expect their outperformance to continue for the coming weeks.

Here are three buy calls for the next 3-4 weeks:

Everest Industries: Buy | LTP: Rs 1,042 | Stop-Loss: Rs 965 | Targets: Rs 1,125-1,180 | Return: 13 percent

The stock price has broken out Symmetrical triangle on the weekly chart with higher volumes to close at all-time high levels. The stock price has been forming bullish higher top higher bottom formation on the weekly chart.

Plus DI (directional index) is trading above minus DI while ADX (average directional index) line is placed above 25, indicating stock price is likely to gather momentum in the coming days.

Castrol India: Buy | LTP: Rs 152.35 | Stop-Loss: Rs 140 | Targets: Rs 166-175 | Return: 15 percent

The stock price has broken out on the weekly and monthly chart by surpassing multiple top resistance of Rs 140 with higher volumes. Stock price has broken out from the Flag pattern on the daily chart.

Stock price is forming higher top higher bottom formation on the daily chart. Oscillators like RSI (relative strength index 11) and MFI (money flow index 10) are sloping upwards and placed above 60 on the weekly chart, indicating strength in the stock.

Healthcare Global Enterprises: Buy | LTP: Rs 339.7 | Stop-Loss: Rs 316 | Targets: Rs 365-380 | Return: 12 percent

The stock price has broken out from the rising channel candlestick pattern on the weekly chart with higher volumes. Stock price has been forming bullish higher top higher bottom formation on the weekly chart.

Oscillators like RSI (11) and MFI (10) are sloping upwards and placed above 60 on the daily chart, indicating strength in the stock.

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