“Nifty might get into consolidation in the price band of 10,600 to 10,740.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
The Nifty ended Thursday 0.36 percent lower at 10,679.65. After an early morning retracement, the index found support around 10,650 levels. It recovered in the latter half of the session before ending with a bearish body candle.
Ending the session below 10,700 mark is a sign of weakness. However, as the chart pattern suggests, the uptrend is intact as long as the critical support of 10,640 is intact. The upside pivotal resistance is placed around 10,780 levels.
On the Nifty hourly chart, negative divergence in the Relative Strength Index (RSI) may restrict the upside till 10,780 levels. Its midway resistance is placed around 10,740 levels. Hence, staying cautious on a rise is advised. The downside pivotal supports are placed around 10,640 and 10,600 levels.
Nifty patterns on multiple timeframes show that it has ended Thursday with a bearish body candle for the second consecutive session. The chart pattern with a position of leading indicators suggests it might get into a short-term trading band between 10,780 and 10,640.
The Bank Nifty ended Thursday 0.14 percent higher at 25,605.25. Its upside resistance is placed around 25,750 levels and the pivotal support on the downside stands around 25,340 levels.
Based on thorough technical study, the firm recommends Jindal Steel & Power (JSPL) with an upside target of up to five percent in the short-term.
Jindal Steel & Power | Rating: Buy | Target: Rs 245, stop loss: Rs 230, Return: 4%
The stock rebounded exactly from the previous consolidation breakout level around Rs 235 towards ending the session with a Hammer candle.
Based on above mentioned observation, we recommend JSPL as a buy 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.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .