By Subash Gangadharan
NSE Nifty 50 has been correcting since final week after touching a excessive of 18115. These ranges additionally corresponded to a significant pattern line resistance that has held down the main highs of the previous few months. The correction seen over the previous few days has led to the Nifty now closing beneath the 20 day SMA, which is an indication of weak spot.
A detailed beneath the quick help of 17457 is prone to set off additional weak spot, which might take the Nifty in direction of the following main help of 17345. Immediate resistance is now at 17595-17664.
The beneath picks are for the following 15-26 buying and selling classes
Buy Shipping Corporation of India
SCI has proven relative energy this week. While the Nifty index has misplaced 1.79% this week, SCI has gained 4.39% over the identical time interval. In the method, the inventory has additionally damaged out of its latest buying and selling vary on the again of above common volumes.
Zooming into the every day chart, we will additionally observe that the 20 day SMA has not too long ago crossed above its 50 day SMA, indicating a constructive shifting common crossover. The inventory can also be buying and selling above the 20 and 50 week SMA and weekly momentum indicators just like the 14-week RSI too are in rising mode and never overbought, which augurs effectively for the intermediate uptrend to proceed.
We due to this fact imagine the inventory has the potential to maneuver larger and take out its earlier intermediate highs within the coming weeks. We suggest a purchase between the 132-136 ranges. CMP is 134.4. Stop loss is at 122 whereas goal is at 164.
Buy REC
REC has not too long ago reversed its brief time period downtrend when it crossed its earlier swing excessive of 127 final week. This week, the inventory has taken a breather and corrected a bit. Technical indicators are giving constructive indicators because the inventory trades above the 20 day and 50 day SMA. Weekly momentum indicators just like the 14-week RSI have bounced again and are in rising mode now.
With the intermediate technical setup wanting constructive, we imagine the inventory has the potential to quickly transfer larger and due to this fact suggest a purchase between the 128-132 ranges. CMP is 130.35. Stop loss is at 125 whereas goal is at 140.
(Subash Gangadharan, Senior Derivative & Technical Analyst. HDFC securities. View expressed are the writer’s personal.)
Source: www.financialexpress.com”