By Nagaraj Shetti
After displaying a variety-bound movement in the last 5-6 sessions, Nifty picked up upside momentum on Wednesday and showed upside breakout of the variety and closed larger. After opening on a slightly positive note, the industry shifted into a sustainable intraday upmove, which continued for the entire session. Minor intraday dips in in between had been used to go extended for the day. A new all time higher was made at 17532 levels and Nifty closed close to the highs.
A extended bull candle was formed on the everyday chart, which indicate an upside breakout of the narrow variety movement of the last one week. This is positive indication and one may possibly anticipate additional upside in the brief term. The positive chart pattern like larger tops and bottoms is intact and the current swing low of 17254 could now be viewed as as a new larger bottom of the sequence. The instant assistance of 10 day EMA is intact and has presented assistance for the Nifty throughout current sideways variety movement. Nifty on the weekly chart continued with uptrend soon after a pause of last week. This action signifies an uptrend strength of the industry as per bigger timeframe chart.
The upside breakout of variety movement could be a cheering aspect for bulls to make a comeback. One may possibly anticipate additional upside towards 17600-17700 levels in the next handful of sessions. Immediate assistance is placed at 17420 levels.
Buy NTPC Ltd- (CMP Rs 124.55)
After displaying a bigger variety bound action in the last couple of months, the stock value has shifted into a sharp upside breakout of the variety at Rs 120-122 levels on Wednesday and closed larger. The bigger degree of positive sequence like larger tops and bottoms is intact on the weekly chart, which indicate medium term uptrend for the stock value. Volume has expanded throughout upside breakout and weekly 14 period RSI shows positive indication.
Buying can be initiated in NTPC at CMP (124.55), add more on dips down to Rs 119, wait for the upside target of Rs 138 in the next 3-4 weeks. Place a stoploss of Rs 115.
Buy Quess Corp Ltd- (CMP Rs 901.40)
The stock value as per extended term charts was moving in a variety bound action more than the last handful of weeks, ahead of displaying upside bounce in this week. The present chart pattern indicate an try of upside breakout of the critical upside resistance about Rs 915-920 levels. Hence, a sustainable move above this location could open a sharp positive effect on the stock value ahead. The weekly DMI/ADX pattern indicate additional strengthening of upside momentum for the stock value ahead.
Buying can be initiated in Quess Corp at CMP (901.40), add more on dips down to Rs 870, wait for the upside target of Rs 1010 in the next 3-4 weeks. Place a stoploss of Rs 845.
(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the author’s personal. Please seek advice from your economic advisor ahead of investing.)