Jaydeb Dey
The Nifty in the previous session ended 0.87 percent higher at 10,605.15. It continued moving higher and higher towards ending the session with a bullish Marubozu candle.
Finishing off last session of the week above 10,560 mark is a sign of restored conviction among bulls. Further, ending the week above 30 EMA, placed around 10,580, on daily chart is another crucial development.
On the weekly chart, it ended nearly flat. It rebounded from the low of 10,418 towards finishing off the week nearer to the high of 10,628 with a Dragonfly Doji.
Candle pattern suggests, this pullback is likely to continue further towards 10,700 and 10780. Hence, buy-on-dips is advised for the coming sessions. However, we don’t rule out the possibility of a consolidation in the price band of 10,560-10,630 before making higher highs beyond 10,630. Immediate upside resistances are placed around 10,630 and 10,700.
On the Nifty hourly chart; extreme positive divergence in RSI fully played out in favour of the bulls and helped restoring the positive momentum once again. Recovery above 200 EMA, placed around 10,600, is a positive development and likely to play an instrumental role in coming sessions. Upside resistances are placed around 10,630 and 10,700.
Nifty patterns on multiple time frames show; it rebounded from the support of 10,420 towards ending the week with a bullish body candle. This pullback from oversold zone is likely to continue further. Next critical resistances are placed around 10,630 and 10,700.
The Bank Nifty in the previous session ended 0.99 percent up at 26,273.55. It ended the week with a Hammer candle, which is pointing towards restoration of bullish trend. Critical support is placed around 26,100, while the immediate resistance is placed around 26,400.
Based on thorough technical study, the research firm recommends Jindal Steel & Power which can give up to 5 percent return in the near short term:
Jindal Steel & Power | Rating: Buy | Target: Rs 245, stop loss: Rs 227, Return: 5 percent
The stock rebounded from the midterm upward trend line and ended the session above critical resistance placed around Rs 233. Hourly chart pattern suggests, the stock is oversold and may recover towards its 30 daily EMA placed around Rs 245.
Based on above mentioned observations, the firm recommends Jindal Steel and Power as a buy on dips for the short term upside target of Rs 245.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
