The Nifty has formed higher top and higher bottom on the daily line chart, which indicates bullish trend reversal for the short term. Nifty has closed above its 5 days EMA, which is the first sign of trend reversal.
Traders are advised to go long with 16,900 stoploss in the Nifty. Target for the Nifty is seen at 17500 for the next couple of weeks. FII’s have been heavily short in index future for last two months. Long to Short ratio by FII in Index Future reached to the oversold zone and therefore we can expect sharp short covering in benchmark indices.
The stock has been holding its uptrend in the falling market. Technical setup of Coromandel International is the strongest within the sector. The stock is placed above all important moving averages. Indicators and oscillators have been showing strength in the current uptrend
The PSU sector has been outperforming for last couple of weeks. Stock price trading above its 20, 50, 100 and 200 DMA.
Indicators and oscillators have turned bullish on the daily charts. The stock Price has broken out from the downward sloping trend line on the weekly chart with rising volumes.
(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).
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