By Nagaraj Shetti
After displaying consolidation kind movement in the final 4 sessions, Nifty shifted into an upside breakout of 13600 levels on Wednesday and closed the day greater by 114 points. After opening on a optimistic note, the industry moved into a narrow higher low intraday variety till the mid portion of the session. Further upside has occurred in the mid to later portion and Nifty closed close to the highs. The opening upside gap remains unfilled.
A smaller optimistic candle was formed with lengthy reduce shadow. Nifty closed above the final 4 session’s upper variety of 11590 levels. Technically, this pattern indicate an upside breakout of the smaller variety at 13600. The all round industry breadth was optimistic and broad industry indices like midcap one hundred and smaller cap one hundred of NSE exchange have closed greater by 1.15% and 1.05% respectively. This is optimistic indication.
After the upside breakout of the resistance of top rated to top rated trend line at 12900 levels in the later portion of Nov 20, Nifty displayed strength at the new highs and sustained the greater levels. Hence, the trend line upside breakout could be viewed as as a valid upside breakout and the optimistic implication is underway given that then.
The brief term trend of Nifty is optimistic and one particular could count on additional upmoves in the coming sessions. The subsequent upside levels to be watched about 13900-14000 in the subsequent 1-2 weeks. Immediate help is now placed at 13580.
Stock Picks:
Buy Torrent Pharmaceuticals Ltd- (CMP Rs 2788)
The weekly timeframe chart of Torrent Pharma Ltd indicate an try of upside breakout, following moving into a sideways variety movement more than the final one particular month. The stock price tag is creating an try of moving above critical overhead resistance of intermediate down trend line at Rs 2770 levels.
Hence, a sustainable move above this region could have a sharp optimistic influence on the stock price tag ahead. Weekly 14 period RSI is placed beneath 60 levels and volume has began to expand along with the upmove in the stock price tag.
Buying can be initiated in Torrent Pharma Ltd at CMP (2788), add more on dips down to Rs 2680, wait for the upside target of Rs 3065 in the subsequent 3-4 weeks. Place a stoploss of Rs 2590.
Buy HEG Ltd – (CMP Rs 868.40)
The weekly timeframe chart of HEG Ltd signal a variety bound movement with optimistic bias. The stock price tag is moving in a narrow band with a formation of constant greater lows. Now creating an try of upside breakout of down sloping trend line at Rs 875-880 levels.
A decisive/sustainable move above this trend line resistance could open a sharp up trended move in the stock price tag. Weekly 14 period RSI is turning up from close to 57-58 levels and its move above the upper 60 could signal a strengthening of upside momentum in the close to term.
Buying can be initiated in HEG Ltd at CMP (868.40), add more on dips down to Rs 830, wait for the upside target of Rs 960 in the subsequent 3-4 weeks. Place a stoploss of Rs 800.
(Nagaraj Shetti is a Technical Research Analyst at HDFC Securities. Views expressed are the author’s personal. Please seek the advice of your monetary advisor prior to investing.)