Nifty has trended well post breaking above 10800 & maintained the sequence of higher bottoms well since then. The index formed a ‘Spinning Top’ formation on the daily scale & has been quoting far from its short term averages. Hence a sustained move above the pattern high of 10980 could see a continued run towards 11060/11100 zone. On the flip side a break below the pattern low of 10920 could see a pullback towards 10840-10800 zone. Therefore aggressive longs positions could be considered once the breakout is sustained above the pattern else existing longs to be maintained with a stop below 10740 in anticipation of a continued move towards 11060/11100 eventually in the later part of the month.
Stock: NIIT TECH
CMP : Rs 1,128
Strong sector performance & the 5 weeks consolidation seems mature now. A sustained move above 1150 would accelerate the momentum as indicated by the trend strength indicator (RSI) which has witnessed a breakout from its corresponding range in yesterday’s session. Trading longs could be initiated with a stop below 1083 & a potential target upto 1246.
CMP : Rs 54
Secular downtrend remains intact as the lower top lower bottom sequence continues on the daily scale as well. IDEA has breached below its critical pivotal around 54 & also trading below its short term averages. Any slippage below 53.80 could drag it further lower towards 50 zone. Short positions should be maintained with a stop above 56.30.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.