Jaydeb Dey Stewart & Mackertich Wealth Management Ltd
The Nifty yesterday ended 1.33 percent up at 10,130.65. Flat opening followed by aggressive buying in the second half of the session led the Benchmark Index closing above critical resistance placed around 10,050.
Ending the session with a huge bullish marubozu candle might be an early indication of trend reversal. Hence, buying on dips is the strategy to be followed in coming sessions. 10,160 is the immediate resistance. And, successful breakout of 10,160 levels brightens the possibility of Nifty moving upward towards 10,230.
On the Nifty hourly chart; Nifty intraday pullback is likely to get carried away further. Upside resistances are placed around 10,160 and 10230. And, needless to say intraday correction towards 10,050 and 10,000 might be a decent buying opportunity for the next leg of up-move towards 10230.
Nifty patterns on multiple time frames show, it ended the day with a bullish marubozu candle. Buying interest around prolonged upward trending channel placed around 10,000 levels might be an indication of bullish reversal. Hence, buying on dips is the strategy to be followed.
The Bank Nifty yesterday ended 2.42 percent up at 24,244.35. Chart pattern suggests, it is approaching towards 200 daily EMA placed around 24,470. 23,800 may now act as the base support.
Based on thorough technical study, the research firm has recommended 2 stocks which can give up to 5% return in the near short term:
Vedanta | Rating: Buy | Target: Rs 292, stop loss: Rs 271 | Return: 5%
After its recent correction from the level of Rs 350 the stock has again come down to the most crucial pivotal support placed around Rs 275 levels. On daily chart, ending the day with a long-legged bullish candle while RSI rebounding from previous bottom might be an early indication of bullish reversal.
Based on the above mentioned observations, the house recommends Vedanta as a strong buy on dips for the near-term upside target of Rs 292.
Hindalco Industries | Rating: Buy | Target: Rs 220, stop loss: Rs 200 | Return: 6%
After its recent correction from Rs 280 levels, the stock has again come down to the most critical pivotal support placed around Rs 200 levels. On daily chart, ending the day with a bullish engulfing pattern while RSI shows indication of positive divergence might be an early indication of bullish reversal.
Based on the above mentioned observations, the research firm has recommended Hindalco as a strong buy on dips for the near-term upside target of Rs 220.
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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