Nifty may face resistance at 10,650 level, says Nilesh Jain of Anand Rathi

SELL NIFTY | TARGET: 10,400 | STOP LOSS: 10,650

The NIFTY index completed its 61.8 per cent Fibonacci retracement of the entire recent fall from the top, which is coming around 10,552 levels. The index is also forming a rising wedge pattern where the upper trend line is coming around 10,650 levels which will now act as immediate resistance. Thus, the risk and reward doesn’t support the long positions and also to hedge stock-specific long position, we advise initiating short positions in Nifty index.

SELL BATA INDIA | TARGET: Rs 1,240 | STOP LOSS: Rs 1,310

The stock provided breakdown from a rising channel on the daily chart. It is also trading well below its short term and long term moving averages. The momentum indicator and oscillators have started making a lower top and lower bottom which hints that we may see some selling pressure in the stock.

BUY VOLTAS | TARGET:  Rs 590 | STOP LOSS: Rs 545

The stock provided breakout from a falling wedge pattern on the daily chart and reclaimed its short term moving average of 21-DMA which is placed at 551 levels. The momentum oscillator MACD has also provided fresh buy crossover on the hourly scale which hints of positive momentum to continue in the short term.

BUY GODREJ PROP | TARGET: Rs 910 | STOP LOSS: Rs 840

The stock earlier provided breakout from a symmetrical triangle formation and then witnessed a throwback where it has retested the breakout levels It is also trading well above its short term moving averages, where 21-DMA is currently placed at 846 levels. The momentum indicator and oscillator are very well in the buy mode on the hourly scale.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research Analyst at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.