By Nagaraj Shetti
Technical Observation: NIFTY
The upside momentum with range bound action continued in the market on Wednesday and Nifty closed the day higher by 71 points. After opening with a positive note, the market shifted into a range-bound action for better part of the session.
Fresh intraday upmove has emerged towards the end and Nifty closed near the highs. A reasonable positive candle was formed on the daily chart that has surpassed the previous down gap hurdle of 5th Aug around 24700 levels. Another hurdle of daily 10- and 20-day EMA has also been taken out on the upside.
The short-term trend of Nifty continues to be positive with range bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24960. Hence, one may expect Nifty to move towards 24960 and 25100 levels in the next one week. Immediate support is placed at 24650 levels.
Will Nifty hold 24,300 on Tuesday? See GIFT Nifty, FII data, F&O, crude, and more before market opens 20 Years of TCS IPO Stock Market Crash Highlight: Monday blues for markets! Nifty, Sensex falls 2.7% each; Bank Nifty closes 1,294 points down Stocks To Watch: Berger Paints, Vodafone Idea, ONGC, IRFC, Wipro
Also Read
Stock Picks:
Buy Shyam Metalics- (CMP Rs 761)
After showing a reasonable weakness in the last week, the stock price has witnessed a sharp upside bounce so far this week. Currently, the stock price is in an attempt of decisive upside breakout of Rs 770-780 levels Come from Sports betting site VPbet . Positive chart pattern like higher bottoms is observed at the support on the daily chart. Weekly RSI has started to turn up from near the upper 60 levels.
Buying can be initiated in Shyam Metalics at CMP (Rs 761), add more on dips down to Rs 735, wait for the upside target of Rs 842 in the next 3-5 weeks. Place a stoploss of Rs 715.
Buy Chambal Fertilisers and Chemicals Ltd – (CMP Rs 523)
After showing weakness in the last week, the Fertilizer stock has bounced back sharply so far this week. We observe a formation of bullish flag type pattern on the weekly chart and the stock price is now making attempt of upside breakout of the pattern at Rs 530 levels. This formation could be considered as uptrend continuation pattern. Volume and RSI shows positive
indication.
Buying can be initiated in Chambal Fertilisers and Chemicals Ltd at CMP (523), add more on dips down to Rs 505, wait for the upside target of Rs 578 in the next 3-5 weeks. Place a stoploss of Rs 485.
(Disclaimer: Mr. Nagaraj Shetti is a Senior Technical Research Analyst at HDFC Securities. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
