Aditya Agarwala
YES Securities
Nifty extended its corrective Wave A, B and C and the ongoing wave being corrective wave 'C'. Moreover, it is approaching 161.8 percent Fibonacci extension level placed at 11,264 which also happened to be the 50-DMA.
A sustained trade above this crucial support zone can trigger a pullback taking it to levels of 11,600-11,750. However, failure to hold support levels of 11,265-11,260 can extend the Wave C taking it to levels of 11,200-11,175. Moreover, RSI has reached oversold zone on shorter time frame charts suggesting a pullback rally on cards.
On the weekly chart, Natco Pharma is on the verge of a breakout from an ascending triangle pattern (as indicated on chart) neckline placed at Rs 840. Breakout above Rs 840 with healthy volumes can resume the uptrend taking it to levels of Rs 900-930.
On the daily chart, it continues to form higher highs and higher lows affirming strong bullishness dominant in the stock. Currently, it has broken out from a Triangle pattern resuming uptrend.
Moreover, RSI turned upwards after taking support at the lower end of the bull zone i.e. 40 level suggesting higher levels in the coming trading sessions.
The stock may be bought in the range of Rs 828-832 for targets of Rs 900-930, keeping a stop loss below Rs 780.
On the weekly chart, Carborundum Universal has broken out from an ascending triangle pattern triggering a resumption of the uptrend. A sustained trade above Rs 385 will extend the uptrend to levels of Rs 410-425.
Further, on the daily chart, it has turned upwards after breaking out from an inverted H&S pattern.
RSI has turned upwards after forming a double bottom suggesting extended bullishness in the coming trading sessions.
The stock may be bought in the range of Rs 384-Rs 386 for targets of Rs 410-Rs 425, keeping a stop loss below Rs 360.
On the daily chart, ABB India has broken out from a sideways consolidation pattern affirming bullishness building up in the stock. Further, the stock has turned upwards after forming a positive reversal on the weekly chart suggesting higher levels in the coming sessions. RSI is also placed in the bull zone.
The stock may be bought in the range of Rs 1385-Rs 1395 for targets of Rs 1460-RS 1535, keeping a stop loss below Rs 1,300.
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