Aditya Agarwala
Nifty has entered in a range bound consolidation phase following significant gains from the election result lows of 10,333 level. Further, now it is approaching 100-SMA placed at 10,956 which also happens to be the recent highs.
A sustained move above the resistance of 10,956 will extend the bull run taking the index to levels of 11,100-11,150. However, a trade below 10,755, which is a trendline support, and 200-SMA will trigger profit booking dragging the index lower to levels of 10,560-10,460.
Moreover, RSI is also approaching the resistance zone of 60-65, failure to take out this resistance may trigger profit booking.
On the daily chart, Mindtree has broken down from the channel support line placed at Rs 856 levels triggering start of a fresh downtrend. Further, a sustained trade below Rs 840 will drag the stock lower to levels of Rs 800-750.
On the weekly chart, it failed to cross and trade beyond the 50-DMA i.e. Rs 908 level indicating weakening uptrend.
Moreover, RSI turned southwards after facing resistance at the 55-level suggesting lower levels in the coming trading sessions.
The stock may be sold in the range of Rs 849-845 for targets of Rs 800-750, keeping a stop loss above Rs 880.
Aditya Birla Fashion and Retail
On the weekly chart, Aditya Birla Fashion and Retail has broken out of a Triangle pattern indicating resumption of the bull trend. A sustained trade above Rs 205 with healthy volumes will extend the uptrend to levels of Rs 225-240.
Further, on the daily chart, the stock is on the verge of a breakout from a Flag pattern consolidation suggesting bullishness intact.
RSI has turned upwards after taking support at 40-level suggesting strong bullishness dominant in the stock.
The stock may be bought in the range of Rs 200-204 for targets of Rs 225-240, keeping a stop loss below Rs 185.
On the weekly chart, The Ramco Cements has broken out from a bullish wedge pattern indicating resumption of the uptrend. Further, it has taken support at the 200-WMA and turned higher affirming bull strength dominant in the stock.
The stock may be bought in the range of Rs 640-645 for targets of Rs 695-725, keeping a stop loss above Rs 600.
The author is Technical Analyst at YES Securities.
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