The Nifty, as anticipated, closed well into the positive territory in the last trading session. It has started to form higher tops and higher bottoms on the hourly charts. The momentum indicator MACD has come well into buy mode on the daily charts with a positive divergence. The Index has started to retrace its five wave declining structure, hence a 38.2 per cent retracement of the entire fall can’t be ruled out which is 11,200 and it coincides with the 200 DMA as well.
TARGET: Rs 1,140
STOP-LOSS: Rs 1,080
The stock has provided a breakout from the inverse head and shoulders pattern which is formed on the daily charts. The stock is also likely to bounce back in its wave C up, hence one can buy this for the target of Rs 1,140 with a stop loss of Rs 1,080.
BUY HINDUSTAN UNILEVER
TARGET: Rs 1,920
STOP-LOSS: Rs 1,850
The stock has provided a breakout from the rectangular pattern and it continues to form higher tops and higher bottoms thereafter. It has provided a buy crossover on its momentum indicator MACD on the daily as well as weekly charts.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.