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Nifty long-term pivotal support placed around 10,000; Buy TCS for 5% return in near-term

“Nifty may continue to oscillate in the price band of 10,160 to 10,000, and may again see buying on dips around 10,000.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

March 23, 2018 / 07:58 AM IST
 
 
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Jaydeb Dey

Stewart & Mackertich Wealth Management Ltd

The Nifty previous day ended 0.4 percent up at 10,114.75. Positive opening reacted down from day’s high 10,207.85 towards ending the session with a bearish candle. Critical resistance of 10230 remained unharmed. Closing below 10,130 with a bearish candle implies, Nifty may again head back towards retesting our long-term pivotal support zone placed around 10,030 and 10,000.

Nifty shying away from the critical resistance of 10,230 for the second consecutive session implies Benchmark Index may continue to act as the short-term critical resistance. Midterm chart pattern suggests, Nifty may continue oscillating in the price band of 10,230 to 10,000 before next leg of decisive move.

On the Nifty hourly chart; downtrend in previous two sessions seems to be continuing. However, critical dual support zone of 10,030 to 10,000 is still well intact. Intraday pullback may find difficulty to penetrate the resistance 10,160.

Nifty patterns on multiple time frames show, the index may continue to oscillate in the price band of 10,230 to 10,000 before next leg of decisive movement. We expect Nifty to retest its recent low around 10,050.

Close

The Bank Nifty previous day ended 0.47 percent up at 24,141.50. It is still trading below 200 daily EMA placed around 24,500 while downside support placed around 24,000 is still intact. Next support is placed around 23,800.

Based on thorough technical study, the research house has recommended Tata Consultancy Services (TCS) which can give up to 5% return in the near short term:

Tata Consultancy Services | Rating: Buy | Target: Rs 2940, stop loss: Rs 2700 | Return: 5%

After reacting down from the recent all-time high around Rs 3250, the stock is again approaching towards previous multi top area placed around Rs 2780. It is trading far above the 200 daily EMA placed around Rs 2700 levels. However, 30 daily EMA placed around Rs 2940 may now act as the immediate pivotal resistance.

Based on the above mentioned observations, the firm has recommended TCS as a strong buy on dips for the near-term upside target of Rs 2940.

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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