Moneycontrol PRO
you are here: HomeNewsBusiness

Buy Capacit'e Infraprojects, stock likely to head towards Rs 360: Aditya Agarwala

"A sustained trade above Rs 320 can trigger a breakout from the channel resuming the uptrend. On the weekly chart, the stock has turned upwards after forming a tweezers bottom suggesting bull trend reversal on cards," says Aditya Agarwala of YES Securities (I) Ltd.

April 03, 2018 / 12:19 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

By Aditya Agarwala

YES Securities (I) Ltd

The Nifty50 index started the April F&O series on a positive note gaining in excess of 1 percent on Monday. Further, it is approaching its upper-end of the channel resistance placed at 10,290 which also happened to be the 61.8 percent Fibonacci retracement level of the recent decline (i.e. 10490-9960).

A successful breakout from the channel on healthy volumes can extend the current pullback to levels of 10430-10640 levels. However, failure to trade above 10290 can resume the corrective wave dragging the Index lower to levels of 10080-10000.

Technical oscillator such as the relative strength index or the RSI has turned upwards after taking support at the 40 level i.e. formed a higher low suggesting a temporary pause in the corrective wave and price has closed above the 200-DMA making room for more upside.

Moreover, a move above the 50 level can extend the short covering rallies in the coming trading sessions.

Close

On the daily chart, Capacit’e Infraprojects Ltd. (CAPACITE) is on the verge of a breakout from the channel pattern after taking support at the 127% Fibonacci extension level placed at 290 (as indicated on chart).

Capacit'e Infraprojects Ltd: BUY | Target:  Rs 360 | Stop loss: Rs 285 | Return 17%

A sustained trade above Rs 320 can trigger a breakout from the channel resuming the uptrend. On the weekly chart, the stock has turned upwards after forming a tweezers bottom suggesting bull trend reversal on cards.

Moreover, RSI formed a positive divergence with price affirming bullishness building up in the stock. The stock may be bought in the range of Rs 306-310 for targets of Rs 340-360, keeping a stop loss below Rs 285.

Disclaimer: The author Technical Analyst at YES Securities (I) Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Apr 3, 2018 09:05 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark