Technical calls by Nilesh Jain of Anand Rathi: Sell Adani Ports, Buy IGL

The stock of IGL has formed a morning star candlestick chart pattern on the daily scale which is considered as a trend reversal pattern.

SELL NIFTY | TARGET: 9,750 | STOP LOSS: 10,040

The NIFTY index breached its major neckline which was placed near 10,040 levels , and also 100-DEMA placed around the same levels. Now, as long as Nifty trades below 10,040 levels, we can expect the downside momentum to continue towards 9,750 levels. The momentum indicator RSI has started making a lower high and lower low formation. Although we may see some pullback as the markets are extremely volatile, the broader structure still looks weak.

SELL ADANI PORTS | TARGET: Rs 325 | STOP LOSS: Rs 348

The stock has breached its major neckline of a rising wedge pattern on the daily chart. The momentum oscillator MACD has also provided fresh sell crossover on the daily chart. Based on the above rationale, we may see some profit booking from the higher levels.

SELL COAL INDIA | TARGET: Rs 128 | STOP LOSS: Rs 143

The stock is facing a major hurdle near 150 levels and also formed a triple top sort of chart patterns. It has also provided breakdown from a rising trend line. The momentum indicator RSI has reached oversold territory near 66 levels and showing signs of reversal which hints that current rally is likely to exhaust and we may see some selling pressure.

BUY IGL | TARGET: Rs 500 | STOP LOSS: Rs 460

The stock has formed a morning star candlestick chart pattern on the daily scale which is considered as a trend reversal pattern. It is trading well above its short term and long term moving averages. The momentum indicators and oscillators have also reversed from its oversold territory which hints of positive momentum to continue in the short term. 

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