SELL NIFTY | TARGET: 8,800 | STOP LOSS: 9,400
Nifty has formed an Island reversal pattern on the daily chart which is hinting at a short-term top formation near 9,900 levels. It has negated the formation of higher top and higher bottom pattern and now has started making a lower top and lower bottom on the daily chart. The immediate resistance of the previous top is now placed near 9,600 levels. Now, as long as Nifty trades below these levels, every bounce should be utilized as a selling opportunity. On the daily chart, Nifty has also formed head and shoulder-like pattern where the neckline is placed near 9,100 levels. If Nifty breaks below 9,100 levels decisively, then we can expect further downside towards 8,500. The momentum indicator RSI has also slipped below 50 levels, showing that Nifty is losing strength and we may see further selling pressure going forward.
SELL SRTRANSFIN | TARGET: Rs 580 | STOP LOSS: Rs 695
The stock has provided a breakdown from a symmetrical triangle formation on the daily chart. It is also facing stiff resistance of 21-DMA which is placed at 695 levels. The volume was higher than average which is also supporting the price action. The momentum oscillator MACD has provided fresh sell crossover on the daily chart. The built-up of a short position can also be seen where open interest has surged by 25 per cent along with a fall in the price.
BUY MARICO | TARGET: Rs 350 | STOP LOSS: Rs 300
The stock has provided breakout from a cup and handle pattern on the daily chart. It has formed a big bullish candle with higher than average volume which hints at positive momentum in the coming sessions. The momentum indicator and oscillator are very well in buy mode on daily as well as weekly scales.
BUY GODREJIND | TARGET: Rs 285 | STOP LOSS: Rs 248
The stock has breached its major downwards sloping trend line and it has also reclaimed its short term 21-DMA which is placed at 260. The stock has also formed a bullish engulfing pattern on the daily as well as weekly scale, which is considered as a bullish reversal pattern.
Disclaimer: All stock prices are in rupee denomination unless otherwise stated. Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. Views are his own.