Nifty has finally reversed after having fallen for 8 consecutive days. It has strongly closed in the positive territory from quite an oversold territory; hence a further bounce can’t be ruled out. The recent decline is the first leg of the downside that has started from 10920 levels. It has bounced back till 23.6% of the recent fall and a 38.2% retracement of the same is expected which comes to 10620, hence that is the short term target. On the lower side 10490 is an immediate support hence that is the stop loss. So, for the short term we recommend a buy as the risk reward is favourable for the aggressive short term traders. The Nifty Pharma has reversed quite well from the lower levels and it is looking good for the short term. As anticipated that the Nifty IT will bounce back and it has happened as anticipated.
Target: Rs 570
Stop Loss: Rs 507
Glenmark Pharma has reversed well from the lower end of the falling channel and the momentum indicators too have provided a positive buy crossover which is quite positive for the short term. The minimum retracement target on the upside comes to 570; one can buy this with a stop loss of 507.
Target: Rs 1,270
Stop Loss: Rs 1,186
Infosys has provided a good breakout from an ascending triangular pattern with an increase in volumes and a buy crossover in its momentum indicators. The stock is forming higher tops and bottoms and it has been trading well in an upward sloping parallel channel, hence the probability of it reaching the upper end of the channel is quite high. SO, we recommend to buy Infosys for the target of 1270 with a stop loss of 1186.