After the consolidation of the last few trading sessions, the Indian stock market saw a strong rally on Monday. In yesterday’s trade, Nifty once again appeared to cross 18000. Nifty closed at 18,003 with a gain of 190 points yesterday. At the same time, the Sensex closed at 60,395 with a gain of 650 points. Nifty Bank closed at 38,347 with a gain of 608 points yesterday. Market watchers say that the current market pattern is now indicating a sharp upside move after a slight downtrend.
Talking about what is today’s intraday trading strategy Nagraj Shetty of HDFC Securities Said that a long bull candle is seen forming on the daily chart with a gap up opening in yesterday’s trade. Technically, this pattern indicates a sharp upward move in the market after a minor decline. Higher highs and higher lows continued on the daily charts. Now Thursday’s swing take of 17,655 can be considered as the new higher low of this sequence. Nifty has broken the close resistance of 17,950 and closed above it. For Nifty, now the level of 18,200-18,350 on the upside will be very important. This level can be achieved in 1 week. Immediate support for Nifty is seen near 17,870.
Ruchit Jain of 5paisa.com It is said that after the recent decline, Nifty has once again achieved the level of 18000 in a very short time. This is indicating a strong buying and selling trend in the market. Although the trend remains bullish, the index is trading close to its short term hurdle. On the other hand, if we look at the derivatives, a big position is being seen on the call of 18,000. This strike is seeing the highest open interest for the current weekly expiry. Keeping these facts in mind, now the possibility of a correction in the short term cannot be ruled out. But no major downside is expected in the market as the undertones of both Nifty and Bank Nifty remain strong. In such a situation, traders will be advised to buy in the fall.
Investment Advice by Sumit Bagdia of Choice Broking
Britannia Industries: Buy at current price, target Rs -3900, stop loss Rs -3675
GAIL (India) Limited : Buy at current price, Target Rs.147-150, Stop Loss Rs.137
Intraday call by Mudit Goyal of SMC Global
Cummins India Ltd: Buy at current price, Target Rs.-970, Stop Loss Rs.-940
Cummins India Ltd: Buy at current price, Target – Rs 970, Stop Loss – Rs 940