Rajesh Palviya
Nifty started the week on a flat note and remained consolidate for most part of the week which led it close on subdued note. Nifty closed at 11,895 with a loss of 13 points on a weekly basis.
On the weekly chart, the index has formed a "Doji" candlestick formation indicating indecisiveness among market participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias.
The chart pattern suggests that if Nifty crosses and sustains above 11,980 level it would witness buying which would lead the index towards 12,050-12,150 levels. However, if index breaks below 11,800 level it would witness selling which would take the index towards 11,700-11,620.
Nifty is trading above its 20, 50, 100 and 200 day SMA's which are important short term moving average, indicating positive bias in the short term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,980-11,700 with mixed bias.
The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias. However, momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a down move in the near term.
Bank Nifty started the week on a flat note and witnessed extreme volatility on both sides. Bank Nifty closed at 31,017 with a gain of 267 points on a weekly basis.
On the weekly chart the index has formed a small Bullish candle with shadows on either side indicating indecisiveness among participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias.
The chart pattern suggests that if Bank Nifty crosses and sustains above 31,200 level it would witness buying which would lead the index towards 31,380-31,660 levels. However if index breaks below 30,580 level it would witness selling which would take the index towards 30,350-30,000.
Bank Nifty is trading above 20, 50, 100 and 200 day SMA's which are important short term moving average, indicating negative bias in the short to medium term. Bank Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 31,380-30,000 with mixed bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
Cholamandalam Investment and Finance Company
On the daily chart stock price has broke multiple resistances on closing basis and has made fresh 52-week high. The stock continues to form a series of higher tops and higher bottoms indicating sustains up trend. This breakout was accompanied with huge volumes indicating increased participation.
The daily strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in near term. Stock price is sustaining well above its 20 and 50 and 100 day SMA which supports bullish sentiments ahead.
Buying Range: Rs 328-320, stoploss Rs 308, target Rs 355-361 (10-11 percent)
On the daily chart, stock price have bounced from the key support of 38.20 percent Fibonacci retracement level and is moving towards the swing high of 1,730 levels . It has also decisively broken out the down sloping trend line around 1,660 levels.
The daily strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in near term. Stock price is sustaining well above its 20 and 50 day SMA which supports bullish sentiments ahead.
Buying Range: Rs 1,695-1,665 stoploss Rs 1,635, target Rs 1,770- 1,790 (5-7 percent)
On the weekly chart, stock is sustaining above multiple support of Rs 118–120 levels. This breakout has accompanied with good volumes which supports bullish sentiments ahead. The weekly strength indicator RSI is in positive territory which supports upside momentum to continue in near term. Stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.
Buying Range: Rs 123-119, stoploss Rs 115, target Rs 131- 134 (8-11 percent)
On the weekly chart stock price has decisively broken out from multiple resistances of 630 levels and sustaining above the same. On the daily and weekly chart the stock has witnessed shift of trend to the upward forming a series of higher Tops and higher Bottoms.
The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in near term. Stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.
Buying Range: Rs 650-638, stoploss Rs 619, target Rs 695-710 (8-11 percent)
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