Last Updated : Jun 13, 2018 08:33 AM IST | Source:

See 10,920 levels if Nifty breaches 10,850; buy Voltas for the short term

“Upside resistances on the Nifty are placed around 10,850 and 10,880,” says Jaydeb Dey of Stewart & Mackertich Wealth Management

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Todays L/H

Jaydeb Dey

The Nifty on Tuesday ended 0.52 percent higher at 10,842.85. It recovered from the day’s low of 10,789.40 before ending the session near the day’s high of 10,856. Ending the session with a Hammer candle implies strength.

However, breaking out of critical resistance placed around 10,850 is necessary before unfolding next leg of the upmove towards 10,880 and 10,920. On the flip side, 10,810 may now act as pivotal support.

On the Nifty hourly chart, index continues to make higher highs despite negative divergence on the relative strength index. Breaking out of the critical resistance around 10,850 may unfold a swift upmove towards 10,880. The next resistance is placed around 10,920 levels.

Nifty patterns on multiple timeframes show that Tuesday’s long upper shadow Shooting Star candle did not work in favour of the bears. Instead, we witnessed buying on dips around 10,790 levels before ending the session with a Hammer candle. Breaking out of 10,850 may trigger a quick upmove towards 10,880 and 10,920 levels.

The Bank Nifty on Tuesday ended 0.58 percent higher at 26,607.10. It ended the session with a Hammer candle. Downside pivotal support is placed around 26,300 while upside resistances are placed around 26,600 and 26,700 levels.

Based on a thorough technical study, the research firm recommends Voltas for the short term:

Voltas | Rating: Buy | Target: Rs 560, stop loss: Rs 515, Return: 5%

The stock looks heavily oversold on daily chart. Yesterday, it rebounded from day’s low of Rs 520 towards ending the session with a bullish body candle. RSI on daily chart shows positive divergence, which may unfold a quick up move towards 200 daily EMA is placed around Rs 560 levels.

Based on the above mentioned observations, the firm recommends Voltas as a buy on dips for the short term upside target of Rs 560.

Disclaimer: The author is Technical Analyst at Stewart & Mackertich Wealth Management Ltd. The views and ideas expressed above may have been suggested to the clients of Stewart & Mackertich Wealth Management Ltd. It is advised that investors/traders should consult with their Certified Experts before taking any investment decision.
First Published on Jun 13, 2018 08:33 am
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