The benchmark index was trading in a narrow range for more than eight days within the smaller degree channel pattern on the daily time frame.
However, the prices recovered from the lower levels after forming a piercing line (bullish reversal) candlestick pattern near the lower band of the pattern.
After narrow range consolidation, bulls have managed to hold on with conviction. Since April 20, the Nifty has rallied more than four percent from its lower end of falling channel pattern on the daily chart.
After consolidating for more than eight days within the band of 50 and 100-day exponential moving averages (EMA), the price registered a decisive breakout that suggests a change in the trend from sideways to upward.
The Bank Nifty chart witnessed a falling channel pattern breakout on the daily and has sustained above its 21 & 50 DEMA.
On the upside, key resistance is at 15,100. If the index sustains above this level, we might see it head higher above 15,250 levels. The key support levels to watch out for in the short-term are 1,4550 followed by 14,400 levels.
Here is a list of stocks for the next three-four weeks:
Escorts: Buy| LTP: Rs 1147| Target: Rs 1235| Stop Loss: Rs 1098|Upside 7%
On the daily chart, Escorts has completed ‘Bullish Butterfly Harmonic pattern. On the weekly chart, prices are trading above their 100-week exponential moving average, which is acting as near-term support for the counter.
Momentum oscillator RSI (14) has witnessed a sharp reversal from 25 levels, which are an oversold zone and currently near 35 levels with positive crossover on the daily time frame.
Based on the above technical studies, we can come out with a view that the price may move towards higher levels over a short period.
Jubilant FoodWorks: Buy| LTP: Rs. 2904| Target: Rs 3070| Stop Loss: Rs 2800|Upside 5%
After a prolonged consolidation, JUBLFOOD has witnessed a Triangle pattern breakout on the daily time frame and is trading above its trend line support.
The stock is trading above its 21, 50 & 100-DEMA on the daily time frame, which is positive for prices in the near term.
There has been above-average volume set up for the past few days. Momentum oscillator RSI (14) has given a horizontal trend line breakout that was placed at 45 levels.
Currently, RSI is near 55 levels with a bullish crossover, which indicates that bullish momentum will likely continue in the near term.
Tata Coffee: Buy| LTP: Rs. 127| Target: Rs 136| Stop Loss: Rs 122| Upside 7%
Tata Coffee is trading in a rising channel pattern on the weekly chart and prices have witnessed a sharp reversal from the support of a lower band of a rising channel pattern.
In terms of the candlestick, the counter has formed a bullish engulfing pattern on the weekly chart and the price is trading above the higher end of the pattern.
The counter is trading above its 21 & 50 DEMA on the daily as well as the weekly time frame, which is positive for the prices in the near term.
(The author is Technical Analyst, Bonanza Portfolio Ltd)Disclaimer
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