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Last Updated : Apr 04, 2018 08:17 AM IST

Nifty heading towards 10,300-10,350; Voltas a good buy for short term

“Falling-Wedge pattern breakout around 10,170 is clearly visible, immediate up-side targets are 10,300 and 10,350.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

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By Jaydeb Dey

Stewart & Mackertich Wealth Management Ltd

The Nifty yesterday ended 0.33 percent up at 10,245. Negative opening found strong support around 10,170 towards ending the session with a bullish candle. Finishing off the session around critical resistance of 10,250 is a sign of strength.

Successive closing above 10,250 may unfold next leg of up-move towards 10,300 and 10,350. Nifty 30 EMA on daily chart is placed around 10,300 levels. Strong pullback from day’s low followed by closing near day’s high despite negative global market cues is encouraging for the bulls.

Close

Further, a Falling-Wedge breakout, bullish reversal pattern, breakout around 10,170 is now clearly visible. Hence, needless to say we still prefer “buy-on-dips around pivotal supports” strategy for the coming sessions as well. Downside supports are placed around 10,210 and 10,170.

On the Nifty hourly chart; Inverse “Head-and-Shoulder” breakout, bullish reversal pattern, with neck line support placed around 10,210 is clearly visible. Hence, traders are advised to buy-on-dips for the immediate up-side target of 10,300 and 10,350. Also, RSI on daily chart is moving in tandem with current bullish reversal makes the bull case even stronger.

Nifty patterns on multiple time frames show, rebound from around 9950 levels followed by “Falling-Wedge breakout” on daily chart is revitalizing for the bulls. Traders and investors are advised to accumulate blue-chip stocks on dips for the next leg of up-move for the higher highs towards 10,300 and 10,350.

The Bank Nifty on the previous session ended 0.75 percent up at 24,510.60. It closed above the critical resistance placed around 24,470, 200 daily EMA, and heading towards 30 daily EMA placed around 24,700.

Based on thorough technical study, the research firm has recommended Voltas which can give up to 5% return in the near short term:

Voltas | Rating: Buy | Target: Rs 673, stop loss: Rs 625 | Return: 5%

Voltas ended the session with a triangle breakout, bullish continuation pattern, on midterm daily chart. Triangle pattern breakout while the primary trend is up is pointing towards continuation of uptrend. Rising RSI coupled with +DI –DI bullish crossover on daily chart makes this breakout reliable.

Based on the above mentioned observations, the house has recommended Voltas as a buy on dips for the short-term upside target of Rs 673.


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.



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First Published on Apr 4, 2018 08:17 am
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