The index continues its bullish structure without much hesitation as the sequence of Higher Tops followed by Higher Bottoms continues. Derivative data highest long & short addition witnessed at 10750 CE & 10650 PE respectively, whereas short covering was seen at 10800 CE, hence NIFTY could remain above 10650 mark as the expected range of NIFTY for coming session could be 10650-10800. With the market breath improving day by day & the baton been passed to large caps a decisive move from here on above 10780 could amplify the momentum towards 10900 while the stops could be now trailed up from 10440 to 10510.
Stock: EXIDE INDS.
CMP: Rs 259.30
Double bottom established at 240 & the stock has maintained well above its 200 DEMA. Also, the weekly Spinning top pattern has been activated as the stock is comfortable trading above its high around 258. We expect the ongoing move to extend towards 276 which is 61.8% retracement zone of its previous decline from 305-237. Trading longs should be maintained with a stop below 250.
CMP: Rs 321
Gravestone Doji formation on the weekly scale marked the exhaustion of the pullback which commenced from 239. A close below its 5 DEMA with strong OI additions & the trend strength indicator reversing from its upper end of oscillating range denotes immediate bearishness to be witnessed soon. Fresh shorts to be considered with a stop above 333 for an immediate move towards 296.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.