Sacchitanand Uttekar
Nifty has been consolidating for the past 4-5 sessions. On its 180 minutes scale the index has been holding well within the broadening formation. A breach above 11,300 would open the move towards 11,377-11,500 while 11,000 remains a dependable support for the week until expiry.
As per its weekly rising channel formation, its close proximity towards its upper-end remains the concern as its momentum indicators have been oscillating in their respective overbought zones. Hence its ideal to remain cautious from hereon & restrict trades to intraday & short term itself with more emphasis on stock specific trade setups on either side.
Weakness if any would only need validation below 10,880 for any larger degree corrective move. As per the derivative data, its key bounds been placed at 11,500 on the upside while 11,000 being the key supports for the markets going ahead.
For the week, we expect Nifty's upside to remain capped once around 11,377-11,500 while its support rests at 11,000-10,900 respectively.
Buy Aarti Industries
Aarti Industries has been oscillating around its 200 DEMA since last 6 weeks. It has been oscillating within the said range of Rs 950-880 with its weekly RSI now turning above 50 which is a good sign of the ongoing consolidation now maturing for a breakout. Breakout from the consolidation could lead towards the pattern target placed around Rs 1,060. Trading longs could be added with a stop below Rs 930.
Buy BPCL
Positive sector outlook and a recent breakout from a Pennant formation on the daily scale indicates an upmove towards Rs 490-495 zone which could be participated with a stop below Rs 435.
Sell Bharat Electronics
Occurrence of an Evening Star formation near its previous swing resistance zone reaffirms the resistance placed at Rs 104. A sustained move below Rs 94 could amplify the move towards Rs 85 where its 200 DEMA is placed now coinciding with its retracement support of its prior impulse upmove. Bounce back if any should be utilised to create fresh shorts with a stop above Rs 102.
The author is DVP – Technical (Equity) at Tradebulls Securities.
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