Nifty plunged more than 1.5 per cent on Tuesday to close below 10,900. Any level below 10,746 would confirm lower top and lower bottom formation on the daily charts. So, for bulls, it would be very important that Nifty maintains its level above 10,746. Resistance is shifted down to 11,100 and unless that is taken out, market trend would remain uncertain.
BUY BRITANNIA (Rs 2,692)
Target: Rs 2600
Stop-loss: Rs 2800
Stock has been consolidating in 100 Rupees range for last 12 sessions with lower volumes. Before this consolidation, it surged nicely with spike in volumes. Stock price has formed bullish “Hammer” candle stick pattern on the monthly chart on Month ended August 2019.
Considering the technical evidences, we recommend buying the stock between CMP and Rs 2,650 for the target of Rs 2,800, keeping stop loss at Rs 2,600 on closing basis.
BUY FINOLEX INDUSTRIES (Rs 538)
Target: Rs 580
Stop-loss: Rs 510
Stock price has broken out from last 10 week’s price consolidation. Stock has also broken out from downward sloping trend line adjoining weekly bottoms. From last 5 sessions volumes have been going up. Moving average and Oscillator setup is bullish on daily and weekly charts.
Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 520, for the target of Rs 580, keeping a stop loss at Rs 510 on closing basis.
Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.