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'See 20% upside for Wipro, HCL Tech and Tech Mahindra; sell private banks'

The recent low of 11,550 is an important level to watch out for. The breaking of this level will confirm the three indecisive candle patterns on the weekly chart

April 29, 2019 / 12:59 PM IST
 
 
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Nifty is hovering around 11,800, quite close to its all-time highs. Though the last week witnessed it retreating strongly from this level down to a low of 11,570, the move clearly overpowered the long-standing efforts of the bulls to cross the all-time high.

The recent low of 11,550 is an important level to watch out for. The breaking of this level will confirm the three indecisive candle patterns on the weekly chart. This opens the room for a further downside of 300 points.

Bank Nifty followed suit with bearish patterns on daily and weekly charts. 29,500 on the index stands as important support. The index too could witness a slide of up to another 1000 points, upon breaking of 29,500.

On the sectoral front, a majority of the stocks from IT sector are trading at their all-time high levels. The RSI too is into the bullish zone on higher time-frames.

Wipro, HCL Tech and Tech Mahindra look promising for an upside of 15-20 percent from their current levels, from a medium-term perspective.

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Wipro Limited – Monthly Chart


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HCL Tech Monthly Chart


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Tech Mahindra Monthly Chart


Private sector lenders like Axis Bank, Yes Bank and IndusInd Bank have broken important support zones while forming bearish candle patterns on daily and weekly charts. The RSI resists moving above the 60 level on the weekly chart.


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IndusInd Bank Weekly Chart


In the above weekly chart of IndusInd Bank, one can see the price moving above the Fibonacci Retracement level of 61.8 percent.

All these banks mentioned above can be traded on the short side for a 7-10 percent decline.

(The author is Founder at Malkansview.)

Disclaimer: 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.​
Vishal Malkan
first published: Apr 29, 2019 12:59 pm