By: Nagaraj Shetti
After showing sharp upside bounce on Tuesday, Nifty continued its upmove with range bound action on Wednesday and closed the day higher by 121 points. After opening with a positive note, the market moved up soon after the opening, but later shifted into an intraday range movement for better part of the session. The opening upside gap remains unfilled.
A reasonable bullish candle was formed on the daily chart with minor upper shadow. This market action indicates an upside continuation pattern. Nifty witnessed minor upside breakout of the immediate resistance of around 19,700-19,750 levels, with gap up opening and the present upside gap could be considered as a bullish breakaway gap. Minor degree positive chart pattern like higher tops and bottoms observed on the daily timeframe chart.
Markets see strong recovery in last hour! Nifty near 24,800, Sensex above 80,900 Markets see steady gains as US recession concerns ease! Nifty near 24,700, Sensex holds 80,800 Nifty’s upside reversed in short-term; Intellect Design and Ramkrishna Forgings top weekly picks of HDFC Securities’ Nagaraj Reliance Jio discontinues popular Rs 395 and Rs 1559 plans: Key details on the change
Also Read
Nifty on the weekly chart placed at the crucial higher bottom reversal at the last week’s swing low of 19,333 levels. Formation of hammer of last week and upside bounce from the intra-week lows this week as per weekly chart indicates more upside ahead for the market in the near term.
Conclusion:
The short-term trend of Nifty continues to be positive. A decisive move above 19,800 levels is likely to pull Nifty towards the next upside levels of 20,000-20,200 in the near term. Important support is placed at 19,650 levels.
Stock Picks:
Buy Indian Railway Finance Corpn-IRFC (CMP Rs 75.55)
The weekly timeframe chart of Railway Finance stock-IRFC indicates a sharp up trended movement over the last few months Come from Sports betting site VPbet . The stock price has moved up decisively as per the bullish chart pattern like higher tops and bottoms according to weekly timeframe chart. Recently, the stock price has shifted into a minor downward correction with range bound action, which is expected to reverse on the upside soon. The recent swing low of Rs 70.35 could now be considered as a new higher bottom of the positive chart pattern and we expect present upside to continue in the near term. Weekly 14 period RSI shows positive indication.
Buying can be initiated in IRFC at CMP (75.55), add more on dips down to Rs 72.50, wait for the upside targets of Rs 83 and Rs 93 in the next 3-5 weeks. Place a stoploss of Rs 69.
Also Read
Buy Easy Trip Planners (EASEMYTRIP) – (CMP Rs 41.35)
After showing weakness in the previous week, the stock price (EASEMYTRIP) has witnessed a sustainable upside bounce in the last week. Presently showing minor consolidation so far this week. The recent upside breakout of down trend line resistance has been validated again with the stock price bouncing back from the weakness during later part of last week.
Currently, the stock price is in an attempt of moving above another resistance at 43 levels. The volume has expanded during upside breakout in last week and weekly 14 period RSI shows positive indication.
Buying can be initiated in EASEMYTRIP at CMP (Rs 41.35), add more on dips down to Rs 39.50, wait for the upside targets of Rs 45.50 and next Rs 51 in the next 3-5 weeks. Place a stoploss of Rs 38.
(Nagaraj Shetti, Technical Research Analyst, HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
