Nifty ended the month with fresh slippage of 2.59% MoM as it closed around 10113 on the final session of the month. The level also corresponds with its 200 days Exponential Moving Average. The immediate trend remains weak and any close below 10,030 could amplify the weakness. Derivative data still indicates as immediate range of 10,000-10,200 while technically a swing resistance also corresponds near 10,250 zone. The truncated weekly close ahead of the long weekend doesn’t support much materialistic evidence of a reversal in place & hence the index could see some consolidation within the range of 9,950-10,250 in the coming week ahead. As the gyration within the range is expected to continue, it’s better to adhere trade with a long & short combo to negotiate during these volatile times.
Stock: JK TYRE
CMP: Rs 163
Secular uptrend on the weekly scale coupled with a fresh impulse commencing on the daily time frame exhibits the uptrend to persist in the coming month. The recent ‘V’ pattern breakout above 158 with incremental volumes indicates the momentum to extend towards 185 zone. Fresh longs could be considered with a stop below 154 for an immediate move towards 185.
CMP: Rs 118.55
Negative sector outlook & a consistent weakness on the daily scale is evident with the lower top lower bottom formation. The recent breakdown from the inverse Flag formation indicates weakness towards 108 which could be participated with a stop above 124
Disclaimer: The analyst may have positions in any or all the stocks mentioned above