SELL NIFTY | TARGET: 8,800 | STOP LOSS: 9,300
The Nifty index has formed a shooting star candlestick pattern on the daily chart which is considered as a bearish reversal candle. Earlier, Nifty provided breakdown from its head and shoulders pattern and now it has retested its neckline again. The major resistance is placed at around 9300 levels. Now, as long as Nifty trades below these levels, every bounce should be utilized as a selling opportunity. The momentum indicator RSI is making a lower top and lower bottom formation which shows that Nifty is losing the strength and we may see further selling pressure going forward.
SELL BANDHAN BANK | TARGET: Rs 190 | STOP LOSS: Rs 222
The stock is making a lower top and lower bottom formation and also it did not participate in a recent pullback at all. On the daily chart, it has also breached a rising trend line on the downside which was placed at 222 levels. the momentum oscillator MACD has provided fresh sell crossover on the daily chart which hints of further weakness in the coming sessions.
BUY HCL TECH | TARGET: Rs 565 | STOP LOSS: Rs 520
The stock has provided breakout from a pennant pattern on the daily chart, where major resistance was placed at 520 levels which will now act as major support. The conservative target of this pattern is coming around 565.
BUY BHARAT FORGE | TARGET: Rs 310 | STOP LOSS: Rs 280
The stock has provided a breakout from a symmetrical triangle pattern where the volume activity also supported the price action. The momentum indicator and oscillators are very well in buy mode on the daily as well as weekly time frames.
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. Views are his own.