Breakout from the intraday channel seems to have re-established the momentum in Nifty. The anticipated level of 9,630 was breached with good volumes as the index saw a swift move towards 9,680. The recent pullback in today’s session provides a good opportunity to add further longs. A follow-through in the coming session above 9,680 could amplify its momentum towards 9,740-9,830 zone (upper end of oscillation). High risk traders could opt for adding further longs with a revised stop below 9,560.
Stock Name: Mahanagar Gas
CMP: Rs 994.65
Stop Loss: Rs 956
Target: Rs 1085
has been in a secular uptrend since July 2016. The recent oscillation has been within a contracting range as the stock is displaying a ‘Triangular’ formation on the daily scale. The converge of the short term averages warrants towards maturity of the pattern. A breach above Rs 1000 could unfold momentum and therefore the stock could be accumulated with a stop below Rs 956 for a target upto Rs 1085.
Stock Name: Ujjivan Financial Services
CMP: Rs 324.20
Stop Loss: Rs 304
Target: Rs 365
Occurrence of a ‘Bullish Hammer’ followed by an ‘Engulfing Bullish’ on the weekly scale reconfirmed the strength in the support around Rs 300. The stock witnessed a sharp rebound from this support zone & the recent consolidation on the daily scale for follow up action. The formation looks like a ‘Pennant’ formation in its initial stage and a breach above Rs 340 could accelerate its momentum towards Rs 365 (200-DEMA). Traders can add longs with a stop below Rs 304 for an initial target upto Rs 365 followed by Rs 400.
Sacchitanand Uttekar, AVP – Technical (Equity) at Tradebulls. He may / may not have position(s) in the stocks mentioned