Nifty support seen at 10550
On Tuesday, Nifty found resistance in the gap range of 10755-10844. Nifty has to close above 10800, to get the further bullish momentum. Last week, Nifty formed bullish higher top and higher bottom formation. Nifty has got strong support around 10550 and it would be advisable to hold longs with that stop loss. We believe that Nifty should remain bullish for the November series.
Buy ITC: 284
Target: Rs 302
Stop loss: Rs 274
The stock price has reversed northward after taking support on long-term trend line support seen on the weekly charts. FMCG sector has been showing a resilient move in the recent past. The stock has closed above its 200 DMA resistance. Oscillators and Indicators have also turned bullish on the short to medium term charts.
Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of 302, keeping stop loss at 274 on closing basis.
SELL JINDAL STEEL: 171
Target: Rs 159
Stop loss: Rs 180
The metal sector has been hammered down with higher volumes during Tuesday’s session. Jindal steel plunged more than 5% and broke down from the price consolidation held in the last 5 sessions. Primary trend of the stock has been bearish with lower tops and lower bottoms.
Considering the technical evidence discussed above, we recommend selling the stock at CMP for the target of 159, keeping stop loss at 180 on closing basis.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.