" Traders can buy the stock around current level and add on dips around Rs 1554-1560 with a stop loss below Rs 1515 (closing) for the target of Rs 1690 and return of 8 percent," says Abhishek Mondal of Guiness Securities.
By Abhishek Mondal
The NSE benchmark Nifty50 settled almost flat in a choppy trading session, modestly up by 22.90 points as caution prevailed ahead of the key economic data of retail inflation and IIP.
On Tuesday, after a gap up opening, markets remained range-bound for most of the day but managed to close above 10400 levels with modest gains of 0.22 percent at 10,402.25; forming a Doji Candle pattern on the daily scale.
If the Nifty50 manages to hold and sustain above 10,440-mark (50DMA) in the next few trading sessions, it can move higher till the resistance of 10,560 levels (50 percent retracement of January to March fall – 10,561).
The immediate support is seen around 10,348 (100DEMA) and 10,300 levels. The Relative Strength Index – RSI on the Daily Chart is at 55.77; showing upward momentum and MACD is trading with positive crossover but still remains below the zero line, which indicates that the bias could remain neutral to bullish for the next few trading sessions.
Cholamandalam Investment and Finance Company has given a consolidation breakout above Rs 1545-1547 levels on the daily scale with higher volumes.
The Daily Relative Strength Index (RSI) is showing an upward momentum and the MACD is sustaining above the zero line with positive crossover whereas OBV — On Balance Volume, continuously trading in a positive channel, which indicates that the stock has the potential to move higher from current levels.
Traders can buy the stock around current level and add on dips around Rs 1554-1560 with a stop loss below Rs 1515 (closing) for the target of Rs 1690 and return of 8 percent.Disclaimer: The author is Research Analyst, Guiness Securities. The views and investment tips expressed by investment experts 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.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.