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Stock ideas from Anand Rathi: Sell Bajaj Finserv, Mahindra & Mahindra

Mahindra & Mahindra's stock has provided a breakdown from a rising wedge pattern on the daily chart

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Market technicals | Markets | Bajaj Finserv

Nilesh Jain  |  Mumbai 

Markets, Buy, Sell, Stocks, Shares
Nifty has provided breakdown from head and shoulder pattern

SELL NIFTY | TARGET: 8,500 | STOP LOSS: 9,050

Nifty continued its lower top and lower bottom formation where it has also provided breakdown from head and shoulder pattern. The conservative target for this pattern comes around 8,500 and immediate resistance of the neckline is placed near 9,050 levels. Now, as long as Nifty trades below these levels, every bounce should be utilized as a selling opportunity. The momentum indicator RSI has also slipped below 50 levels which shows that Nifty is losing strength and we may see further selling pressure going forward.

SELL BAJFINSERV | TARGET: Rs 4,320 | STOP LOSS: Rs 4,550

The stock has provided a breakdown from a symmetrical triangle formation on the daily chart. A big bearish candle is also formed where volume has also supported the price action. The momentum indicator RSI has formed a double top on the daily chart which indicates the stock is losing strength and we may see some selling pressure.

SELL M&M | TARGET: Rs 350 | STOP LOSS: Rs 390

The stock has provided a breakdown from a rising wedge pattern on the daily chart. The momentum indicator has also reached overbought territory and started to move lower.

BUY COLPAL | TARGET: Rs 1,450 | STOP LOSS: Rs 1,330

The stock has provided breakout from a pennant pattern on the daily chart and has also reclaimed its 200-DMA which is placed at 1,370. The momentum indicator RSI has started moving higher and is currently at 53 levels, which hints at the continuation of the positive momentum.


Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. Views are his own.

First Published: Tue, May 19 2020. 07:50 IST
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