“A trade below 11,270 levels can halt the current uptrend, dragging the Nifty lower to 11,170-11,050,” says Aditya Agarwala of Yes Securities
The Nifty has been stalling in the last two trading sessions following last week’s sharp upmove. It is also approaching the upper end of the channel placed at 11,500-11,530 levels.
A sustained trade above 11,530 can extend the current upmove to 11,800-11,200 levels. However, a trade below 11,270 can halt the current uptrend, dragging it lower to 11,170-11,050 levels.
On the daily chart, the relative strength index (RSI) has formed a lower high, while price has made a new high. This confirms that the uptrend is losing momentum and can lead to minor correction/consolidation before it resumes the uptrend.
Hatsun Agro Product: Buy| LTP: Rs 708| Target: Rs 780-815 | Stop loss: Rs 650| Return: 10-15%
On the weekly chart, Hatsun Agro Product is on the verge of a breakout from a channel pattern neckline placed at Rs 720. A breakout above Rs 720 with healthy volumes can resume the uptrend taking it to levels of Rs 780-815.
On the daily chart, it has started forming higher highs and higher lows. Further, good volumes are seen on the bull candles which confirm bullishness.
Moreover, RSI has 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 707-709 for a target of Rs 780-815, keeping a stop loss below Rs 650.
Colgate Palmolive (India): Buy| LTP: Rs 1,144 | Target: Rs 1200-1,270 | Stop loss: Rs 1,100 | Return: 5-11%
On the weekly chart, Colgate Palmolive (India) has broken out of a channel pattern triggering the resumption of the uptrend. A sustained trade above Rs 1,150 will extend the uptrend to levels of Rs 1200-1270.
Further, on the daily chart, it has broken out of a consolidation phase affirming strong bullishness dominant in the stock.
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 237-240 for targets of Rs 265-285, keeping a stop loss below Rs 215.
TVS Motor Company: Buy | LTP: Rs 549 | Target: Rs 600-625 | Stop loss: Rs 510| Return: 9-14%
On the daily chart, TVS Motor Company is on the verge of a breakout from a wedge pattern suggesting bullishness building up in the stock.
Further, the stock has turned upwards after forming a positive reversal on the daily chart suggesting higher levels in the coming sessions.
RSI has turned upwards after forming a positive divergence indicating that the downtrend is losing steam. The stock may be bought in the range of Rs 547-552 for targets of Rs 600-625, keeping a stop loss below Rs 510.Disclaimer: The author Technical Analyst at YES Securities (I) Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.