Bias for Nifty may remain bearish below 19,300: HDFC Securities

Vinay Rajani of HDFC Securities sees bullish near-term patterns for Central Bank, and Ujjivan Small Finance Bank

Nifty view

Nifty rose for the sixth consecutive session to hit an all-time high of 19,434. On July 4, 2023, Nifty added 0.34 per cent in the upward rally to close at 19,389.

Nifty ended the session with “Hanging Man” candlestick pattern which signals short term reversal if the low of the candle is breached. The level below 19,300 could confirm the bearish trend reversal in the Nifty.

Bank Nifty, meanwhile, ended the session with “Long Legged Doji” on the daily chart and the bearish implication of the same would be activated once the Index breaks below 45,000-mark in spot.

As far as resistance is concerned, 19,500 should continue to remain hurdle in the short term. Existing longs should be held with 19,300 stop-loss in Nifty. 

Buy Central Bank
Last close: 30.55
Target: Rs 32.60
Stop-loss: Rs 28.80

Daily charts show that the stock price has broke out from the downward sloping trend line. Price Breakout is accompanied by jump in volumes. PSU bank stocks have started outperforming the market in the last two trading sessions, while the stock is placed above all important moving averages, which indicates bullish trend on all time frames.
 

Buy Ujjivan SFB
Last close: 40.20
Target: Rs 42.40
Stop-loss: Rs 37.70

Stock price has closed at new 52-week high levels, along with rising volumes. Micro Finance companies have been outperforming for last many months and same is expected to continue. Stock price has broken out from previous three week’s narrow consolidation.

Disclaimer: Vinay Rajani is CMT (Senior Technical and Derivative Research Analyst) at HDFC Securities. Views expressed are personal. He doesn't hold any position in the above mentioned stocks