Aditya Agarwala
Nifty continues to form lower lows and lower highs which indicate bearish sentiments at the moment. Further, the index has broken down from a rising channel pattern indicating extended weakness.
A trade below 10,100 can drag the Index lower to levels of 9,960-9,835. However, a sustained trade above 10,280 can halt the current weakness triggering a short covering rally taking it to levels of 10,355-10,465.
Moreover, the short-term RSI is forming a positive divergence which suggests that the downtrend is losing steam. This can lead to a short covering rally. Furthermore, RSI must move beyond the 40 for any significant rally to materialize.
On the weekly chart, ICICI Bank has turned upwards after taking support at the 50 percent Fibonacci retracement level placed at Rs 300. Further, a sustained trade above Rs 328 will trigger a breakout from a consolidation taking it higher to levels of Rs 365-380.
On the daily chart, it has broken out from a channel pattern suggesting bullishness.
Moreover, RSI has turned upwards after taking support at the 40-level suggesting higher levels in the coming trading sessions.
The stock may be bought in the range of Rs 323-327 for targets of Rs 365-380, keeping a stop loss below Rs 290.
On the weekly chart, GE Power India is on the verge of a breakout from a verge pattern neckline placed at Rs 830. A sustained trade beyond the neckline with healthy volumes can extend the rise to levels of Rs 865-900.
GEPIL Weekly Chart
Further, on the daily chart, it has broken out from a trendline resistance suggesting bullishness.
RSI has turned upwards after forming a double bottom at 40-level suggesting extended bullishness in the coming trading sessions.
The stock may be bought in the range of Rs 250-253 for targets of Rs 280-295, keeping a stop loss below Rs 780.
On the daily chart, TVS Motor Company is on the verge of a breakout from a wedge pattern indicating bullishness building up in the stock.
TVS Motor Weekly Chart
Further, the stock has witnessed pullback from the support zone of Rs 475 on good volumes indicating buying at lower levels.
The stock may be bought in the range of Rs 538-542 for targets of Rs 600-635, keeping a stop loss below Rs 500. The author is Technical Analyst at YES Securities (I) Ltd.
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