Business Standard
Web Exclusive

'Nifty needs to close above 11,585 to negate short-term bearish trend'

Close above 11,585 would negate the bearish setup on the short term charts and could push Nifty towards the recent high of 11,794

Topics
Stock calls | Market technicals | Markets

Vinay Rajani  |  Mumbai 

It seems that the chances of Nifty going up are higher than going down
It seems that the chances of Nifty going up are higher than going down

Above 11,585, bearish setup on Nifty chart would be negated

Nifty index closed at the highest level in the last 5 sessions. The index has retraced 61.8% of the entire down move seen from 11,794 to 11,185. Any level above 11,585 will also surpass the previous top resistance on the daily chart. Close above 11,585 would negate the bearish setup on the short term charts and in that case Nifty could move towards the recent high of 11,794. The way sectors are getting rotated. It seems that the chances of Nifty going up are higher than going down. Support for Nifty is seen at 11,383 and with that stop loss Nifty should be held long.

Buy Asian Paint (2018) | Target: Rs 2,100 | Stop-loss: Rs 1,948

The stock price has broken out from last 5 month’s consolidation. Volumes remained high during the price breakout. For last 3 sessions, the stock has been consolidating with lower volumes. However, considering the primary up trend, it is expected to perform well in the coming days too. The price is placed above all important moving averages, indicating uptrend on all time frames

Buy Infosys (982) | Target Rs. 1050 | Stop-loss Rs 945

The stock price has broken out from last one month’s price consolidation. Primary trend of the stock has been bullish, as it has been forming higher tops and higher bottoms on the weekly and monthly charts. There is a bullish "Flag" pattern breakout is seen on the weekly chart of the stock. The rise in price is accompanied by rise in volumes too which adds the strength in the current up move.

=============================
Disclaimer: Vinay Rajani is Technical Research Analyst at The analyst doesn't have any holding in the stock. Views 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, September 16 2020. 08:03 IST
RECOMMENDED FOR YOU
.