By Hadrien Mendonca
The Indian equity markets extended winning streak for the third consecutive week ignoring the rising crude oil prices scenario.
The Bank Nifty not only held firm above the 200-DEMA but has also surpassed the 25,000 immediate peak of the overall lower top lower bottom structure on the daily chart.
Lower time frame chart analysis indicates that Bank Nifty has also broken out from the Symmetrical Triangle pattern and projections indicate another 300-points up move from here on.
However, the index has to surpass its resistance of 25,280 before the projection unfolds. However, the cause of concern is Bank Nifty which is trading very close to the 25,250 levels which is the Head and shoulder pattern neckline breakdown that was witnessed in the first week of March which is acting as a strong resistance.
The Nifty50 has to surpass its previous peak of 10,480 on a closing basis for the momentum to sustain or to gather more strength.
IRB Infrastructure Developers: BUY | Target: Rs 302 | Stop loss: Rs 258 | Return: 11%
The stock could see a multi-year breakout on the cards as a five-year long consolidation phase finally seems to be coming to an end. IRB was stuck in a trading range between Rs 171 and Rs 260 which in turn has formed a Rectangular Channel pattern on the weekly chart.
Projections indicate the stock is all set to move towards its conservative target of Rs 302.
Disclaimer: The author is Senior Technical Analyst, IIFL. 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.
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