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Last week was characterized by a steady climb in Nifty with prices making fresh new highs throughout the week. However, traders found it challenging to trade within the key indices due to sluggish intraday movements.
On Friday as well, Nifty opened positively but lacked follow-through buying, remaining confined within a 50-point range and ending with a 0.29 per cent gain, just above 23,450. For the week, Nifty added 0.75 per cent to the bulls' kitty.
Summing up the weekly trading activity for the key indices, it was a dull week. This is evident on the daily chart, which shows a series of small-body candles indicating bullish fatigue and a time-wise correction phase.
Throughout the week, prices remained within the 23,300 - 23,500 range. For the coming week, this key range extends to 23,200 - 23,600. Beyond this zone, momentum is expected to pick up again, as the hourly Bollinger Band has contracted significantly.
According to technical analysis, a period of low volatility is typically followed by high volatility. Traders are advised to monitor these levels and adjust their trades accordingly. The market undertone remains positive, so traders should consider buying on dips and booking profits at higher levels.
SUVEN PHARMA
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View: Bullish
Last Close: Rs 719
Target: Rs 785
Stop Loss: Rs 683
Over the past two months, the Suven Pharma stock has been trading within a tight range of Rs 100, fluctuating between Rs 600 and Rs 700.
Last week, prices decisively broke above this range, confirming a 'Rectangular Channel' breakout. The breakout is further bolstered by a gap known as a 'Breakaway Gap'. Additionally, there has been an increase in trading volume and the formation of strong bullish candlesticks, supporting a buy recommendation.
Furthermore, a bullish crossover has occurred with the 20-SMA crossing above the 50-SMA, adding to the bullish technical signals. Considering these technical indicators, we hold a strongly positive outlook on this stock.
Hence, we recommend to BUY SUVENPHAR around Rs 715 - Rs 719 | SL: Rs 683 | TGT: Rs 785.
MAX HEALTHCARE
View: Bullish
Last Close: Rs 928
Target: Rs 998
Stop Loss: Rs 888
After reaching an all-time high around Rs 910 levels in February, prices entered a period of consolidation driven by overbought conditions in momentum indicators. This consolidation phase persisted for over five months with low trading volumes.
Recently, prices have resumed their primary uptrend by surpassing the February swing highs and entering uncharted territory once more. The breakout has been accompanied by increased volume activity.
Momentum oscillators, which previously declined from deep overbought levels, are now comfortably in positive territory and showing upward trends, reinforcing a bullish stance on the stock.
Hence, we recommend to BUY MAXHEALTH around Rs 925 - Rs 928 | SL: Rs 888 | TGT: Rs 998.
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Disclaimer: Rajesh Bhosale, Equity Technical Analyst, Angel One. Views expressed are his own.
