By Nagaraj Shetti
Nifty continued to point out weak point on Wednesday amidst vary motion and closed the day decrease by 91 factors. A protracted unfavourable candle was shaped on the every day chart, that has overlapped the earlier unfavourable candle. Technically, this market motion sign continuation of draw back momentum and an absence of energy to maintain the highs.
After the upside breakout of essential resistance of down sloping pattern line at 16100 ranges on July 8, the market has did not maintain the beneficial properties and slipped into weak point since then. The present sample suggests a false upside breakout of the pattern line resistance. On the opposite aspect, smaller diploma of upper tops and bottoms is unbroken and the current weak point appears to be according to the brand new increased backside formation. But, there is no such thing as a affirmation of any increased backside reversal sample as of now.
The short-term pattern of the market continues to be weak. Nifty is at present positioned on the key decrease help of 16000 ranges. A decisive transfer under this help might drag Nifty all the way down to the following help of 15700 ranges. A sustainable upside might resume above 16150 ranges.
Stock Picks:
Buy ASTRAL LTD
Target: Rs 1,950
After exhibiting a range-bound motion in the previous few weeks, the inventory worth (ASTRAL) has shifted right into a sustainable upside bounce thus far this week. The inventory worth has moved above the hurdle of Rs 1745 as per the idea of change in polarity. This motion might be thought-about as an upside breakout of the hurdle in addition to the vary. Volume has began to rise throughout upside breakout and RSI exhibits constructive indication.
Buying may be initiated in ASTRAL at CMP (1775), add extra on dips all the way down to Rs 1710, look ahead to the upside goal of Rs 1950 within the subsequent 3-4 weeks. Place a stoploss of Rs 1655.
Sell TECH MAHINDRA JULY FUTURE
Minor upside bounce of the final three weeks appears to have accomplished on this IT inventory (TECHM), because the inventory worth has witnessed downward correction from the highs. We observe a unfavourable chart sample like decrease tops and bottoms on the weekly chart and this week’s swing excessive of Rs 1034 might now be thought-about as a brand new decrease high of the sequence. From right here, one could anticipate additional weak point within the inventory worth in the direction of the formation of decrease backside of the sequence. Weekly 14 interval RSI exhibits unfavourable indication.
One could look to promote TECHM JULY FUTURE at CMP (Rs 965.50), add extra on rise as much as Rs 995 and look ahead to the draw back goal of Rs 890 within the subsequent 2-3 weeks. Place a stoploss of Rs 1030.
(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”