" The price has also given breakout from Bollinger bands with expansion of bands suggesting trend likely to continue in direction of breakout," says Ashish Chaturmohta of Sanctum Wealth Management.
Sanctum Wealth Management
New financial year has started on positive note for equity markets. The Nifty began the day on cautious note but gained momentum as the session progressed to finally close at 10,212 levels up by 0.97 percent for the day. Broader markets bettered the benchmark indinces with BSE MidCap and SmallCap indices gaining 1.4 percent and 2.35 percent respectively. Advance/Decline ratio on NSE was almost 5:1.
Yesterday’s rally has managed to close above the 200-day moving average. But it continues to trade below past couple high of 10,227 level which is acting as resistance for the market. Also, index has been unable to sustain above the short term 21-day exponential moving average since the decline started. Trend line connecting highs from 10,631 and 10,478 comes around 10,250 levels.
On positive side, index has formed bullish inverted head and shoulders reversal pattern on intraday time frame and trading at neckline level. Thus, index has near term resistance zone at 10,230-10,250 levels which needs to be crossed on sustainable basis.
Above 10,250 levels, the index can rally towards 10,420-10,500 levels where next cluster of resistances are seen. On the downside index has immediate resistance at 10,095 levels, breaking below this next support is at 9,950-9,920 levels.
HDFC Bank Limited | Rating: Buy | CMP: Rs 1931 | Target: Rs 2100, stop loss: Rs 1860 | Return: 9%
The stock is in long term uptrend forming higher top higher bottom formation. It recently touched high of 2015 in the month February and then corrected down to Rs 1830 odd levels. Since then price has been trading in sideways range for last couple of months and witnessed consolidation in a range of Rs 1920 and Rs 1830 odd levels.
Yesterday, the stock witnessed strong price momentum with long bullish candlestick formation and gave breakout from this trading range. The price has also given breakout from Bollinger bands with expansion of bands suggesting trend likely to continue in direction of breakout.
MACD has moved above neutral level of zero suggesting change of trend from sideways to up. Thus, the stock can be bought at current level and on dips to Rs 1910 with stop loss below Rs 1860 for target of Rs 2100 levels.Disclaimer
: The author is Head Technical and Derivatives, Sanctum Wealth Management. 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.