Nifty outlook and technical calls by Vinay Rajani, Technical & Derivatives Analyst at HDFC Securities
Nifty likely remain bearish unless it closes above 10800.
On Tuesday, in last half an hour of trading, Nifty recouped all the intraday losses and closed with a “Doji” candlestick on the daily chart. Doji Candle indicates indecision between bulls and bears. Tuesday’s low which is 10583, has now become short term support in Nifty. However, overall trend would remain bearish unless Nifty surpasses 10800 on closing basis. Any level below 10583 could drag Nifty towards 10335 support.
Target: Rs 704
Stop Loss: Rs 645
The stock price has given Symmetrical Triangle breakout on the Daily charts. Higher tops and higher bottoms on the daily and weekly charts. Volumes gradually improving along with the price rise. The stock price has been trading above its 20, 50, 100 and 200 DMA. Oscillators and Indicators setup is bullish. The banking sector is likely to outperform.
Considering the technical evidence discussed above, we recommend buying the stock between 669 and 655 for the target of 704, keeping the stop loss at 645 on closing basis.
Target: Rs 390
Stop Loss: Rs 340
The stock has recently registered new 52 weeks high with higher volumes. IT sector has been outperforming for last one month. The stock has already posted its quarterly results which was good. The stock has broken out from bullish “Cup and handle” pattern on the weekly charts. The stock is trading above all important moving averages, indicating uptrend on all time frames.
Considering the technical evidence discussed above, we recommend buying the stock between CMP and 350 for the target of 390, keeping stop loss at 340 on closing basis.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.