 "Nifty in consolidation mode; short-term trend bullish, says Vinay Rajani")
The NSE Nifty fell the second consecutive session to close at 17,362. This can be considered as a consolidation in an overall bullish trend. The Nifty is still maintaining its level above its 5, 10 and 20 days EMA, which indicates bullish trend for short term. Support for the Nifty is seen at 17,050 levels and traders can hold longs with that as a Stop Loss.
Stock recommendations:
Buy Century Textile (CMP: Rs 878) | Target: Rs 925 | Stop Loss: Rs 840
The stock has broken out from double top resistance of Rs 832 with rise in volume. The indicator and oscillator setup has been holding bullish stance on the weekly charts. Short term moving averages are placed above medium to long term moving averages. Realty sector has been performing very well and Century Textile has good exposure in realty sector. The stock has been forming higher tops and higher bottoms on weekly and monthly charts.
Buy VIP Industires (CMP: Rs 483) | Target: Rs 538 | Stop Loss: Rs 450
Downward sloping trend line breakout is seen on the weekly charts. In August, the stock saw huge amount of volume building along with price rise. Further, bullish cup and handle pattern breakout is seen on the weekly charts. Though, RSI has reached overbought zone, it has not shown any sign of negative divergence. Weekly MACD has been trading above signal and equilibrium line. The stock is placed above medium to long term moving averages, indicating bullish trend on all time frames.
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Disclaimer: Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal
Stock recommendations:
Buy Century Textile (CMP: Rs 878) | Target: Rs 925 | Stop Loss: Rs 840
Also Read
Buy VIP Industires (CMP: Rs 483) | Target: Rs 538 | Stop Loss: Rs 450
Downward sloping trend line breakout is seen on the weekly charts. In August, the stock saw huge amount of volume building along with price rise. Further, bullish cup and handle pattern breakout is seen on the weekly charts. Though, RSI has reached overbought zone, it has not shown any sign of negative divergence. Weekly MACD has been trading above signal and equilibrium line. The stock is placed above medium to long term moving averages, indicating bullish trend on all time frames.
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Disclaimer: Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal
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