Vinay Rajani of HDFC Securities bullish on Shipping Corp & one other stock

Nifty gained for the second consecutive session, rising 220 points to close at 22,776. After opening nearly 50 points higher, supported by favorable global cues, the index sustained its upward momentum throughout the session and settled near the day’s high.

The short-term trend of the Nifty has turned positive, with the index closing above its five-day EMA for the first time since September 23. Immediate resistance is placed at 22,875, followed by 23,080. On the downside, support has shifted higher to around 22,550.

Stock price has found support on its 50 DEMA and broken out from the “Flag” pattern on the daily chart. Price rise is accompanied by rise in volumes. Stock is placed above all key moving averages now, which indicates bullish trend on short term time frame. Daily RSI has been sustaining above 50.

Stock price has found support near its 200 SDMA and 50 WEMA and bounced back healthy correction. Stock price has also formed double bottom pattern near 261, which further confirms bullish reversal. Indicators and oscillators have turned bullish on the daily charts.