By Rohan Patil
Nifty 50 has consolidated in the narrow variety of 16200 – 16350 for six trading sessions and has offered a breakout on the larger side and closed close to its lifetime higher levels on August 13. On the weekly chart, costs have offered a clean break out of a bullish pole flag pattern and costs had been in a position to close above the upper band of the pattern.
RSI (14) plotted on the weekly time frame remains above the 65 mark and is drifting larger towards the overbought level, indicating that bulls are tempting to take manage of the trend. Two back-to-back powerful green candles on the weekly chart indicate an aggressive breakout in the Benchmark index.
To conclude, we think that the choppy trend has ended in the massive-cap space. We can anticipate Nifty to hit an upside target variety of 16650 – 16700 in a quick span of time. Dips must be utilized to produce fresh longs in massive-cap stocks.
Nifty Monetary Index continued its bullish trend immediately after a consolidation breakout and closed at 17350 levels with a obtain of 1.25% on the weekly interval. Nifty IT index continues to rule the market place on week on week basis and closed at 32678 levels with a obtain of 4.39% on the weekly time frame.
Nifty pharma index appears to be in its distribution phase and closed at 14049 levels with a loss of 3.23% and indicates an overbought situation. The nifty Metal index has formed a bearish hanging man candlestick pattern at all-time higher levels if costs closed under the decrease wick of the pattern which is at 5540 levels we can get a confirmation for the pattern.
BANK NIFTY
It was a pretty volatile week for the Bank Nifty exactly where a value continues to trade in a stringent manner inside the variety of 35700 – 36150 levels. Prices on the day-to-day chart are trading close to the horizontal trend line resistance which is placed at 36250 – 36300 levels.
One of the positive aspect is that costs are trading in a larger higher larger bottom formation on the weekly interval. The 21-day exponential moving typical is reading close to the continuation gap which is placed close to 35500 levels.
Momentum oscillator RSI (14) on the day-to-day chart has formed an inverted head & shoulder pattern and its neckline resistance is placed close to 63 levels. On the indicator front, MACD has offered a positive Crossover which indicates that the move is probably to continue northward. ADX (14) shows a reading of 17 and is increasing which explains the strength of the trend will continue.
Bank Nifty is also seeing massive place writing at 36000, this tends to make a excellent possible assistance for Bank Nifty followed by 35800 levels. Resistance is pegged close to 36500 and 36900 levels.
ESCORTS: Get
CMP: Rs 1272.40 | Target Rs 1360 |Stop Loss Rs 1220
Return 7%
ESCORTS had been trading in a narrow variety of 1140 – 1240 from last 4 months and has formed rectangle pattern on the day-to-day time frame. On August 10, costs witnessed a breakout of a rectangle pattern at 1270 levels.
Stock is trading above its 21, 50 & one hundred- day exponential moving averages on a day-to-day time frame, which is positive for the costs in the close to term. When we observe volume activity there has been above-typical volume set up from the previous couple of weeks on the day-to-day chart, which indicates accumulation phrase. Momentum oscillator RSI (14) is reading above 60 levels with positive crossover on the weekly scale.
Based on the above Technical research we can come out with a view that the value may well move towards larger levels more than a quick period.
BATA INDIA: Get
CMP: Rs 1705 | Target Rs 1825 | Stop Loss Rs 1635
Return 7%
The costs had been trading in an ascending triangle formation considering that previous six months and have formed a trend line resistance at 1690 levels.
BATA India has broken out of an ascending triangle pattern at 1693 levels on August 10 and the costs have registered a decisive breakout that suggests a modify in the trend from sideways to upside. Stock is trading above its 21, 50 & one hundred- day exponential moving averages on day-to-day time frame, which is positive for the costs in the close to term.
MACD indicator is reading above its centerline with positive crossover above its signal line. Momentum oscillator RSI (14) is reading close to 60 levels which indicates positive momentum will like to continue ahead.
(Rohan Patil is a Technical Analyst at Bonanza Portfolio. Views expressed are the author’s personal. Please seek advice from your monetary advisor just before investing.)