Nifty key levels to watch on Dec 31; JSW Steel, UPL on analyst radar

Nifty View

Nifty fell for the fourth consecutive session, with a minor fall of 3 points to close at 25,938. On a derivative expiry session, index witnessed healthy volatility with first half of the session dominated by bears while the in second half bulls had an upper hand. Recovery in the second half of the session and a level above 50 DEMA(25,837) in Nifty keeping hopes alive for the bulls. Decisive close below 50 DEMA would result into positional bullish trend violation in Nifty. On the upside, a level above 26,100-26,150 band would bring back the bullish momentum in the Nifty.

 

Buy JSW Steel (₹1,110) | Target: ₹1,165| Stop-loss: ₹1,055

JSW Steel Stock price has found support on its 200 DEMA and bounced back with RSI positive divergence on the daily chart. On the weekly chart Stock formed bullish “Harami” candlestick pattern on the previous swing high support, which indicates potential bullish trend reversal on positional charts.

Buy UPL (₹778) |Target: ₹875| Stop-loss: ₹690

UPL Stock price has broken out from downward sloping trend line on the monthly charts. Higher tops and higher bottoms on the weekly and monthly chart. Stock is placed above all key moving averages, indicating uptrend on all time frames. Weekly RSI is sustaining above 50, indicating sustained uptrend for the underlying. MACD is placed above signal and zero line on both weekly and monthly charts. Stock price has broken out from the consolidation which held for last 7 weeks. Price rise is accompanied by healthy volumes.

  (Disclaimer: This article is by Vinay Rajani, senior technical and derivative analyst, HDFC securities. Views expressed are his own.)