Business Standard
Web Exclusive

Nifty likely to remain choppy, these are the key levels as per Vinay Rajani

The technical analyst from HDFC Securities recommends buying Action Construction Equipment and Bandhan Bank.

Topics
Buzzing stocks | Nifty Outlook | Market trends

Vinay Rajani  |  Mumbai 

NSE, national stock exchange, nifty50

Nifty: Choppy trend Continues

The NSE Nifty has been consolidating in the narrow range for the last six trading sessions. The Nifty has formed double bottom pattern at 16,950-odd levels on the daily chart. However, bullish reversal would only be confirmed if Nifty surpasses 17,393 on a closing basis. Any close below 16,950 would be considered fresh break down on the charts, which could drag Nifty towards next support of 16,604.

Buy

Action Construction (ACE)

Last close: Rs 244

Target: Rs 265

Stop Loss: Rs 230

The stock has been finding support on its 200-day EMA for the last 6 months. Last week, the stock broke out from the narrow range with jump in volume. The stock has surpassed the crucial resistance of previous swing high at Rs 244. The weekly RSI has reached above benchmark level of 50, indicating rising momentum. The Weekly MACD indicator has crossed signal line on the upside and has reached above the equilibrium line. The stock is placed above all important moving averages, indicating bullish trend on all time frames.

Buy

Bandhan Bank

Last close: Rs 340

Target: Rs 365

Stop Loss: Rs 320

The downward sloping trend line breakout is seen on the weekly charts. The price breakout is accompanied by jump in volume. The stock has also surpassed its previous top resistance of Rs 331 on the weekly chart. The stock is now placed above all important moving average parameters. Indicators and oscillators like RSI, DMI and MACD have been showing strength in the current up move. The relative strength of the stock is high as compared to other banking stocks.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 27 2022. 07:41 IST
RECOMMENDED FOR YOU
.