Sell Adani Transmission, advises Dinesh Rohira

The Nifty50 which closed above its crucial psychological level of 10300 last week registered gains of over 2 percent for the week ended April 6th.

Benchmark indices staged a strong pullback rally fuelled by firm global cues. Broader markets outperformed the Nifty Midcap and Smallcap indices rose over 2 percent, each last week.

Sectorally, all indices ended in the green led by metal and PSU banking stocks. The Nifty has corrected by about 11 percent from February peak 11172 and found support from 52-weeks EMA 9980.

The Nifty, in the last week, witnessed the continuation of the short-term pullback that had originated from sub-10,000 levels in the penultimate week. However, experts feel that it would be wise to use pullback rallies to short the index.

The pullback has done descent retracement of the previous fall and has now reached a crucial resistance zone i.e. 10300-10350. There are multiple parameters, lying over there, to restrict further upside.

Dinesh Rohira, Founder & CEO, 5nance.com

Adani Transmission Ltd: SELL | Target Rs170 | Stop Loss Rs184 |Return 5%

Adani Transmission continued to consolidate on its weekly price chart after making a short-term breakout in the previous session, but it failed to sustain the momentum.

The scrip witnessed a sustained selling pressure to breach below its crucial EMA levels placed at Rs 191 levels coupled with weak volume trajectory, indicating a negative sentiment for the scrip.

The scrip formed a strong bearish candlestick pattern on its weekly price chart suggesting a negative momentum in coming session.

Further, the secondary momentum indicator continued to indicate negative signal with RSI at 37 levels which is still above oversold zone coupled with weak support from MACD trend.

The scrip is facing a resistance at Rs 191 levels and support at Rs 160 levels which will remain crucial for scrip. We have a sell recommendation for Adani Transmission which is currently trading at Rs 178.85.

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