By Nagaraj Shetti
After displaying consolidation motion on Tuesday, Nifty witnessed a sustainable upmove on Wednesday and closed the day greater by 135 factors. A sustainable upmove has emerged out there until afternoon, earlier than displaying one other spherical of consolidation motion on the highs. A protracted constructive candle was fashioned on Wednesday on the every day chart with decrease and minor higher shadow. Technically, this sample point out an upside bounce out there after one session of sharp weak spot on Monday. The essential overhead resistance of 14,880 ranges (resistance as per change in polarity) got here into the scene on Wednesday, as Nifty retested the hurdle by forming a day’s excessive of 14,879, earlier than displaying minor weak spot from the highs.
Beforehand, on three events, the Nifty has witnessed a pointy downward reversal from close to this resistance space (14,880) in subsequent classes, after closing on the fringe of this space in earlier classes. The Nifty has closed once more on the fringe of this hurdle on Wednesday (made a excessive of 14,879) and there’s odds of draw back turnaround of Nifty from the highs, as occurred prior to now. However, a sustainable transfer above 14,900 ranges may convey sharp upside momentum again into motion. The formation of broader vary motion with at some point of declines just under the hurdle and a formation of constant greater lows within the final three every day candles may sign an optimistic view out there for a brief time period.
The quick time period pattern of Nifty is constructive with vary certain motion. The market is now positioned close to the make or break – essential space of 14,900 ranges. The quick time period chart sample point out minor intraday weak spot or consolidation motion round 14,880 ranges earlier than displaying a sustainable upside breakout within the quick time period. Speedy help is positioned at 14,730.
Purchase KOLTEPATIL (CMP Rs 243)
The weekly timeframe chart of this Actual Property stock-Kolte Patil Builders Ltd point out a sustainable upside bounce, that began from final week. After displaying a false draw back breakout of the weekly decrease vary at Rs 240 within the mid a part of March, the inventory value has witnessed a sustainable upside bounce within the subsequent two weeks. This false draw back breakout may imply possibilities of extra upside within the close to time period. The bigger diploma of upper tops and bottoms is unbroken and the latest swing low of Rs 212 of mid of March may very well be thought of as a brand new greater backside of the sequence. Weekly 14 interval RSI is trying to maneuver above 60. This might imply additional strengthening of upside momentum within the inventory value.
Shopping for will be initiated in KOLTEPATIL at CMP of Rs 243, add extra on dips all the way down to Rs 232, look forward to the upside goal of Rs 268 within the subsequent 3-4 weeks. Place a stoploss of Rs 225.
Purchase UNIONBANK (CMP Rs 36.85)
The sharp downtrend on this PSU banking inventory (Union Financial institution) appears to be over, because the inventory value has witnessed a sustainable upside bounce in the previous few classes. The inventory value has witnessed an upside bounce from close to the essential help zone of weekly 10 and 20 interval EMA and the pattern line help as per the idea of change in polarity round Rs 34-35 ranges.
We observe a formation of upper bottoms on the weekly chart and the latest swing low of Rs 33.30 of mid a part of March may very well be thought of as a brand new greater backside of the sequence. Therefore one could anticipate additional upside within the quick time period. Weekly 14 interval RSI reveals constructive indication and quantity has began to develop with upmove within the inventory value.
Shopping for will be initiated in UNIONBANK at CMP of Rs 36.85, add extra on dips all the way down to Rs 35, look forward to the upside goal of Rs 40.50 within the subsequent 3-4 weeks. Place a stoploss of Rs 33.75.
(Nagaraj Shetti is a Technical Analysis Analyst at HDFC securities. The views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)