The Nifty has been rising for the last three consecutive sessions. Form the recent swing low of 16,410, it has recovered 9 per cent towards 17,827. By crossing 17,766, the index has surpassed the 61.8 per cent retracement of the entire downswing seen from 18,604 to 16,410. This development has negated the bearish developments, which were seen on the medium term chart previously. Nifty has now got good potential to reclaim a level above 18,000 and then towards a new all-time high. Support for the Nifty has now shifted to 17,640 odd levels. Traders should hold on to their long positions with 17,640 stoploss.
Buy Birla Corporation (1,478) | Target: Rs 1,580 | Stop-loss: Rs 1,420
The stock has broken out from the downward sloping trend line on the daily chart. Price breakout is accompanied by jump in volumes, which confirms the bullish trend reversal. It has also broken out from bullish cup and handle pattern on the daily chart. The cement sector has started showing traction after long time. Indicators and oscillators have turned bullish on daily and weekly charts. The stock has been forming higher tops and higher bottoms on weekly charts.
Buy L&T Technology Services (5,955.50) | Target: Rs 6,250 | Stop-loss: Rs 5,800
The stock has registered a new all-time high at 5,955 with rising volumes. On week ended December 31, 2021, it broke out from the price consolidation, which was held for previous 6 weeks. The IT sector has been outperforming for last many months and the same is expected to continue. Indicators and oscillators have turned bullish on daily chart. The stock is placed above all important moving average parameters.
Disclaimer: Vinay Rajani, Senior Technical & Derivative Analyst, HDFC securities. Views expressed are personal.
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