The Nifty has been correcting for the last two trading sessions. The Nifty has entered in the gap zone which was created on July 20, 2022 between 15,359 and 16,490. This gap zone could act as a short-term support for the Nifty.
Positional Trend of the Nifty is bullish as it has maintained higher top and higher bottom formation on the daily chart.
Considering the positional up trend, we believe that dips should be utilized to initiate fresh longs. Stop loss for longs should be kept at 16,300. Resistances for Nifty are seen at 16,800 and 17,422.
Buy range: Rs 888 – 860
Targets: Rs 950, Rs 980
Stop Loss: Rs 850
Last week, the stock broke out from last five month’s narrow price consolidation. The price breakout was accompanied with rising volumes.
For the last five trading sessions, the stock price has been consolidating with lower volumes. Further, the Stock is placed above its 50 and 200 days EMA, which indicates bullish trend for medium term.
The stock can be bought in two tranches one at CMP and second at Rs 860, for targets of Rs 950 and Rs 980, keeping a Stop loss at Rs 850.
Buy Range: Rs 1,275 – 1,235
Targets: Rs 1,345, Rs 1,390
Stop Loss: Rs 1,219
On July 19, 2022, the stock surpassed the crucial resistance of its 200 days EMA with jump in volumes. The stock price also broke out from the bullish inverted head and shoulder pattern, last week.
The stock has recently witnessed throwback towards the previous breakout level, which can be considered as a buying opportunity.
The stock can be bought in two tranches one at CMP and second at Rs 1,235, for the targets of Rs 1,345 and Rs 1,390, keeping a stop loss at Rs 1,219.
(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).