With strong bearish pattern in daily chart coupled with a market regulatory stance on shell firm and geopolitical issue, the short term consolidation in next session can’t be ruled out unless market witnesses a favourable trigger.
The Indian Equity market went through series of correction period during the five straight trading session with both the major index losing about 4 percent from their earlier peak.
The Nifty breached its crucial support level at 9,850 with about 103 points down to close with a negative bias at 9,710 level. On weekly basis, Nifty shredded about 3 percent with negative bias indicated in Friday’s trade.
On the weekly chart, Nifty made a strong bearish pattern indicating a further consolidation going forward. Further, a weak RSI at sell-zone where price is trading below crucial support level indicates a negative outlook for the Index coupled with downtrend momentum depicted by MACD trading below its Signal Line.
On the Moving Average Analysis, the index just went below its 50-day EMA indicating a negative signal. The Nifty is currently facing a resistance at 9,874 and support level at 9,540 as indicated.
With strong bearish pattern in daily chart coupled with a market regulatory stance on shell firm and geopolitical issue, the short term consolidation in next session can’t be ruled out unless market witnesses a favourable trigger. However, the long term trajectory is inclined towards the bullish regime.
Here is a list of top four trading ideas which could give up to 10% upside in near term:
ADF Food: BUY| Target Rs. 238 | Stop-loss: - Rs. 205 |Upside: - 10%
Despite opening with negative bias during the early trading session, ADF Food traded on positive bias during Friday’s trade gaining about 6 per cent. The stock also witnessed a volume growth throughout the trading session despite marginal movement in price.
On its weekly chart, the stock made a bullish reversal pattern which factors the negative movement going forward and further supported by volume growth on daily basis.
On the technical front, the stock is currently trading at favourable regime with RSI at 55 supporting the buying sentiment coupled with bullish crossover indicated by MACD at 10. The stock is currently facing resistance at 244 levels while its support level is placed at Rs204.
We have a BUY recommendation for ADF Food which is currently trading at Rs. 216.95
Pidilite Industries: SELL| Target Rs. 753 | Stop-loss Rs. 798 |Upside 5%
Despite gaining a momentum during the closing week, Pidilite Industries traded on consolidation mode through the week and lost about 3 per cent on weekly basis with a negative bias.
Further, the stock witnessed considerable raise in volume which further added the negative outlook. On the weekly price chart, the stock continued to form a bearish candlestick pattern as it decisively closed below its crucial support level.
On a technical basis, the stock continued to trade on negative regime indicated by weak RSI 43 followed by the bearish crossover of MACD at the regime.
Further, the price of the stock is currently trading below its 50-days EMA indicating a downtrend momentum in short-term while its long term trajectory is inclined towards the bullish regime. The stock is currently facing a resistance level at 803, while the support level will be seen at 734.
We have a SELL recommendation for Pidilite Industries Ltd. which is currently trading at Rs. 790.3
Axis Bank: SELL| Target Rs.466 | Stop-loss Rs. 495 |Upside: - 5%
Axis Bank continued with downward spiral throughout the trading session losing about 4 per cent on weekly basis. Despite gaining an uptrend movement on an intraday basis, the stock continued to close with negative bias below its opening level on the backdrop of mounting sell volume.
On week price chart, the stock continued to form bearish trend indicating a further downtrend in upcoming session coupled with lower volume support.
Further on a technical basis, the stock is inclined towards negative price trajectory with weak RSI support coupled with bearish crossover at the regime, thus indicating a negative outlook.
The stock is facing its resistance from 20-days EMA at 504 with support at 460. With retracement indicating a price trading below all levels the stock is expected to remain under pressure through the week.
We have a SELL recommendation for Axis Bank which is currently trading at Rs. 489.7
Hindustan Unilever: BUY| Target Rs. 1195 | Stop-loss: - Rs. 1125 | Upside: - 4%
Hindustan Unilever came under pressure throughout the week despite marking a weekly-high at 1208 level but it failed to cohere on the level. On weekly basis, the stock was down by about 3 per cent despite the gaining momentum.
However, the volume growth witnessed during the same timeline didn’t support the uptrend movement in price.
On the weekly chart, the stock made a marginal upward trend supported by volume despite closing on a negative trajectory. This formation may confirm the end of further consolidation during the next week opening trade.
The technical outlook suggests a relative buy regime at the current price. Further, the stock is facing an upper circuit at 1208 level witnessed during last trading session followed by a support level at 1120.
We have a BUY recommendation for Hindustan Unilever which is currently trading at Rs. 1152.8Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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