By Rahul Sharma
US markets pulled back on Friday last week with the Dow Jones closing a shade beneath 35,000 mark. This has made a Doji structure on the important US Indices on weekly basis creating the setup indecisive. Nikkei 225 is top the recovery in Asia up by 1.5%.
Check live cost: Nifty Bank Nifty
The tug of war continued on Friday involving the Bulls & Bears but the great point is there is bullish divergence seen on the everyday and hourly charts of Nifty. Both Nifty and Bank Nifty Futures saw fresh addition in positions but it was Bank Nifty that saw volumes spike. Options concentration is seen at 15,700 Puts and 15,900 Calls. Nifty supports are placed at 15,740 & 15,700 when 15,850 & 15,925 is anticipated to act as resistance. A close above 15,850 should really support the index propel larger to challenge the 16,000 mark.
: HDFC, PNB, Maruti Suzuki, Indian Oil, Tata Motors, Britannia, Tejas Networks stocks in focus
From the sectoral indices front, Midcap100, Metals, Realty & Media continue to look great when Auto Index is attempting to reverse from oversold territory. Bank Nifty remains a lead to of concern as it is underperforming the broader marketplace. 33,900 should really act as important assistance to determine the trend from right here. A close above 35,000 is a must for the present setup to boost. Nifty Financial Services Index is somewhat much better than Banknifty and requirements a close above 15,860 for fresh upside.
SAIL
Target – Rs 160/180
Metal counters have come back into the momentum buyer’s radar immediately after a 3-month consolidation background. SAIL saw increasing volumes and delivery quantity in last two weeks along with a bullish pennant and pole pattern breakout. Expect it to test 160/180 on the upside with cease-loss placed at 125. (Chart supply: Falcon7)
SUN Television
Target – Rs 650
SUNTV has broken out of its 1.5-year triangle pattern along with mega shift in volumes and delivery quantity. Futures saw rise in OI by 20.3% when 600 Calls witnessed maximum addition. One can get with cease-loss at 540 and target of 650 and above. (Chart supply: Falcon7)
(Rahul Sharma is the Director & Head – Research at JM Financial. Views expressed are the author’s personal. Please seek the advice of your monetary advisor ahead of investing.)