Nifty has broken a crucial support of 10585 which would imply a further downside to 10400 levels; also Nifty closing below 50DMA confirms the weakness. The support for the day is seen at 34670/10420 while resistance is seen at 35220/10550. Bank Nifty would have a range of 25800-26380. Once again it becomes a sell on rising with the level of 10750 as resistance. IT sector along with other sectors continue to show weakness.
CMP: Rs 150.05
TARGET: Rs 160
STOP LOSS: Rs 144
The stock has been consolidating for quite some time at around 145 – 150 levels and currently has indicated a positive candle pattern in the daily chart to signify strength and has potential to rise in the coming days. The bias has turned positive and with the RSI indicating a trend reversal to signal a buy, there is still more upside to anticipate a rally. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 160 keeping a stop loss of 144.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.