Nifty forms Morning Star pattern, support shifted up to 11,783: HDFC Sec

Support for the Nifty shifted up to 11,783

Nifty recouped all the losses witnessed on the Budget day and closed on a strong wicket. The recovery from lower levels has resulted in to bullish “Morning Star” candlestick pattern on the daily charts. However, the range of 12,000-12,050 is a strong resistance zone for the Nifty, which should be taken out on a closing basis to negate the bearish trend. Nifty Support is now shifted upward to 11,783, the low registered on 4th Feb 2020.

BUY NAM-INDIA (359.5): | Target Rs. 399 | Stop-loss Rs 345

Symmetrical Triangle breakout on the daily charts indicates continuation of an uptrend. Higher tops and higher bottoms are there on weekly and monthly charts. Stock is placed above its 20, 50, 100 and 200 DMA, indicating bullish trend on all time-frames. On Balance Volume Index has registered new top on the daily chart, confirming the price breakout. RSI has broken out from the long downward sloping trend-line and sustained above 50.

BUY MAX INDIA (89.5): | Target Rs. 99 | Stop-loss Rs 84

Pennant Pattern Breakout is seen on the weekly chart with rising volumes. Downward sloping trend line breakout is seen on the weekly charts. Primary trend of the stock has been bullish with higher tops and higher bottoms. MACD indicator is placed above its signal and equilibrium line on weekly charts. Weekly DMI Indicator has turned bullish as +DI has been sustaining above its equilibrium line.

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Disclaimer: The author is a Technical & Derivatives Analyst at HDFC Securities. He may have positions in one or all of the above mentioned stocks. Views expressed are personal.