By Nagaraj Shetti
The upmove with variety bound action continued in the market place on Wednesday and Nifty closed the day greater by 41 points. After opening on a weak note, the Nifty slipped into weakness in the early portion of the session. A sustainable upside recovery has emerged from the day’s low of 15,764 in the early-mid portion and the market place showed intraday variety movement in the afternoon to the later portion of the session.
A affordable extended candle was formed on the each day chart with minor decrease shadow. This action signal variety bound action in the market place with acquire on dips chance. The Nifty is nearing a vital overhead resistance of 15,900 levels and made a swing higher of 15,877 on Wednesday. As occurred in the earlier handful of occasions, the lack of strength at the highs is emerging in the market place close to the vital overhead resistance.
Hence, even though market place moves up in the next 1-2 sessions, the sharp upside breakout of 15,915 is not anticipated and there is a greater possibility of resumption of next round of downward correction from the greater levels. Though Nifty moved up on Wednesday, the all round market place breadth was not impressive.
The quick term trend of Nifty continues to be positive. But, the lack of strength in the upside momentum is ruling out any decisive upside breakout of 15,900 levels. There is a possibility of minor weakness emerging from the highs once again in the next 1-2 sessions. Immediate assistance is placed at 15,750.
Stock Picks:
Buy Minda Corporation Ltd- (CMP Rs 135.90)
After displaying bigger consolidation movement in the last one month, the stock value has witnessed upside bounce so far this week. We observe upside breakout of the variety movement at Rs 133 levels and the stock value now trading slightly decrease on the each day chart. The bigger degree positive sequence like greater tops and bottoms is intact and the stock value is now moving towards the new greater leading. Weekly volume and RSI shows positive indication.
Buying can be initiated in MINDACORP at CMP (Rs 135.90), add more on dips down to Rs 131, wait for the upside target of Rs 152 in the next 3-4 weeks. Place a stoploss of Rs 127.
Buy Raymond Ltd- (CMP Rs 446.85)
After displaying sideways variety movement in the last one month, the stock value (Raymond) witnessed a sharp upside breakout of the upper variety at Rs 435 in this week. Currently, it is trading slightly decrease. The stock value has moved above the vital overhead resistance of up sloping trend line at Rs 437 levels. The positive chart pattern like greater highs and greater lows was observed on the weekly chart more than the last numerous months and the stock value is close to the new greater higher. Weekly RSI has turned up above 60 and volume has began to expand through upside breakout in the stock value. This is positive indication and signal more upside ahead.
One could look to acquire RAYMOND at CMP (Rs 446.85), add more on dips down to Rs 430 and wait for the upside target of Rs 495 in the next 3-4 weeks. Place a stoploss of Rs 415.
(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. The views expressed are the author’s personal. Please seek the advice of your investment advisor ahead of investing.)