Nifty has been oscillating within a contracting range which exhibits Triangular Formation characteristics. The occurrence of key candlestick formations at the lower end of the pattern reaffirms the strength in the base while its corresponding RSI values also reaffirm the strength in the pattern support. Index formed yet another bullish formation viz. ‘Bullish Harami’ on the daily scale at the pattern support line and 3 touch points on either side of the range are done & an ideal scenario should be an accelerated move beyond 10950 zone in coming sessions. The pattern indicates a price target around 11140. The bullish setup would be considered void in case 10600 is violated on a close from here on & hence serves as a stop for momentum longs while positional longs can be held with stop placed below intermediate trend support 10440. Traders should consider building some aggressive longs once close above 10860 for an immediate move towards 11140.
CMP: Rs 671
The stock closed at new life highs along with acceleration of uptrend indicating a start of fresh impulse. The move commenced from 604 lows registered on 3rd January and is expected to continue till initial Fibonacci projection targets of 698 & 704 in coming weeks. The pattern setup is further complemented as daily RSI is crossed above 65 levels and has room till overbought levels are witnessed. Traders should accumulate the stock on dips with stops placed below 654 for 698 & 704 extended targets
CMP: Rs 184
Stock managed to close above its 50 DEMA for the first time since it registered its 52 week low around 155 along with an accelerated move of Daily RSI above 50 levels. The setup could turn out to be an Inverted Head & Shoulders initially targeting 201 levels. Since the stock is bouncing off 52-week lows further short covering can accelerate the upward move hence traders can buy on dips for 201 with stop placed below 175 levels.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.