Nifty Outlook: Nifty respected the upper bound of the ongoing Sloping Channel formation as it escalated towards its 200 DEMA placed near 10110. RSI is a key leading indicator & remains a good yardstick to gauge any early signs of a probable break through. Though its corresponding RSI swing value failed to surpass its previous swing high placed around 48, the probability of an immediate breach above 10300 remains low. The 200 DEMA support level around 10110 would remain a make or break level for the coming sessions as a breach below the same could drag the index below its recent swing low of 9950. Traders should remain extremely cautions while trading within this uncertain zone of 10300-10100. Only a sustained breach outside the same could unlock directional momentum.
Stock: CADILA HEALTH
CMP: Rs 394
On the daily scale the stock witnessed a breakout from a ‘Falling Wedge’ formation. The developing divergence on the intermediate scale also compliments the likely reversal towards the price pattern target around 425-430. Positional longs could be considered with a stop below 372 for a short term target upto 430.
CMP: Rs 116.30
Negative sector outlook & fresh breakdown from a continuation pattern on the daily scale indicates weakness to persist. Momentum could aggravate towards 108 levels & fresh shorts could be still considered with a stop above 119.60.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above