The stock was in a consolidation mode for the past two months and, now, it has breached the major neckline on the daily chart. It is likely to make an attempt to fill the gap which is placed at 1,600 levels. The momentum indicator RSI has reversed from oversold territory and MACD has provided a buy crossover on the daily chart which hints of fresh upside momentum in the counter.
BUY BAJFINANCE | TARGET: Rs 5,800 | STOP LOSS: Rs 5,330
The stock has provided a breakout from a double bottom pattern and scaled towards fresh new highs. On the daily time frame, the stock has surpassed the upper band of the Bollinger band which indicates a fresh breakout in the counter. The momentum indicator RSI is showing signs of reversal from the oversold territory and MACD has provided a fresh buy crossover on the hourly chart hints of a further momentum on the higher side.
BUY DMART | TARGET: Rs 3,150 | STOP LOSS: Rs 2,830
The stock is in a secular uptrend and in the recent correction, it has found support at its 50-DMA and reversed from the same. It is also trading well above short term and long term moving averages. It surpassed the middle band of the Bollinger band which will now act as immediate support. Based on the above rationale we can expect the counter to make a new high 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.
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