 "Nifty needs to sustain above 19,550 for bullish bias to hold")
Nifty View
For last two trading sessions, Nifty has been forming 'Doji' candlestick patterns on the daily chart, which indicates indecision after the running correction.
The Nifty is trying to find support on an upward sloping trend line adjoining the swing lows of March 2023 and September 2023. 50 days EMA for the Nifty is currently placed at 19,553 odd levels.
Indicators like RSI, MACD and DMI have been showing sign of weakness in the benchmark index. If we apply disparity index of 200 days EMA on Nifty, then we can observe the development of the negative divergence by that oscillator on the daily chart.
So, for an intermediate bullish trend to hold, Nifty has to sustain above the crucial support of 19,550.
Any level below 19,550 could intensify the selling pressure which could drag the Nifty towards the next support of 19,300. It is advisable to hold long positions with the strict stoploss of 19,550 in Nifty spot.
More From This Section
On the higher side band of 19,800 - 19850 could offer a resistance in the Nifty.
Union Bank
BUY
Last close: Rs 99.75
Target: Rs 113
Stop-loss: Rs 93
The stock price has broken out from upward sloping trend line on the weekly chart. The stock price has also broken out from inverted head and shoulder pattern on monthly chart.
Price breakout is accompanied with jump in volumes. Stock price is trading above its 20, 50 and 200 DMA, indicating bullish trend on all time frame.
Indicators and Oscillators like MACD and RSI have turned bullish on the weekly charts
GSFC
BUY
Last close: Rs 175
Target: Rs 190
Stop-loss: Rs 165
The stock price has broken out from the symmetrical triangle pattern on the daily chart, which indicates continuation of an uptrend. Price breakout is accompanied with jump in volumes.
Primary trend of the stock is bullish as it has been holding above all important moving averages. Indicators and oscillators have turned bullish on the weekly chart.
(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal).