As expected, the Nifty index continued its up move and also reached our short term target of 11,550. Now, interestingly, Banknifty has also started joining the rally which is a positive sign for the overall market. Hence, one should remain on the long side of Nifty index and utilise every dip as buying opportunity till the time it doesn’t break its major trend line, which is placed at 11,450 levels. The momentum indicators and oscillators on the weekly scales are still in 'buy' mode, which hints at some buying at lower levels.
The counter has provided breakout from a symmetrical triangle pattern on the daily chart. It also surpassed its major resistance of 200-DMA placed at 349 levels which will act as immediate support. The RSI is making a higher top and higher formation and MACD has provided a buy crossover on the daily chart which hints at a further positive momentum in the counter.
BUY RADICO | TARGET: Rs 445 | STOP LOSS: Rs 405
The stock has breached a multi-year trend line on the weekly scale and also making a higher top and a higher bottom formation on the daily chart. The volume has also picked up from the past couple of sessions. The momentum indicator and oscillator are in 'buy' mode on the daily as well as a weekly scale which hints at further positive momentum in the counter.
BUY GRASIM | TARGET: Rs 720 STOP LOSS 660
The stock is in a secular uptrend and also trading in a rising channel. On the weekly scale, it is on the verge of a major breakout from a 2-year downward sloping trend line. It is trading well above its short-term and long-term moving averages. The momentum indicators and oscillators are very well in the 'buy' mode on daily as well as weekly scales which hints at further positive momentum in the counter. Disclaimer: Nilesh Jain is Technical and Derivatives Research analyst at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.
To read the full story, Subscribe Now at just Rs 249 a month