The index after a lot of struggle, successfully crossed the milestone of 10,000 mark in the week gone by.
The Nifty50 made an all-time high at 10,114.85 on the expiry day, but we have seen some profit booking coming through in the last session as it closed at 10,014.50, still up by 99.25 points or 1 percent for the week.
The index maintains its Higher Top and Higher Bottom formation in all the time frames such as Daily, Weekly, and Monthly.
For the week ahead, the index seems to be in a fix. If Index breaches the recent high of 10,115, then immediate resistance level stands at extrapolated levels 10,200 – 10,350 level in the near future.
On the flip side, the index may witness further profit booking below the 9,820 – 9,770 mark (previous Swing Low) with intermediate supports placed at 9,700-9,650, mark which is an earlier breakout level.
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Reliance Capital: BUY| Target Rs845| Stop Loss Rs667| Return 17%
In a previous week, the stock entered in a Bullish orbit with a forming of a big Bullish candle on the daily as well as on the weekly charts with huge volume confirmation.
The stock has also registered a 52-week high that also corresponds to a multi week, multi month breakout.
The weekly relative strength index (RSI) indicator is placed at around 67 mark which indicates that there is a still a good amount of space on the upside in the medium term.
On the daily chart, the momentum oscillator like ADX is located at 22 with directionally upward bias.
We expect the current rally of the stock will continue till Rs800 – 845 in the medium term and the stop loss for the same may be maintained at Rs667.
CESC (930.7): BUY| Target Rs1039| Stop Loss Rs900| Return 11%
The stock gave a breakout above the 2-months consolidation pattern, both on the daily as well as on the weekly charts.
In last trading session, the stock has formed a Bullish Engulfing candlestick pattern on the daily chart with volume confirmation which is a strong positive signal for the near future.
We have seen that the medium term 13 (898) & 34 (892) exponential moving averages have remained positively aligned since the last 2 weeks on the daily charts, which is an add-on cause for the current bullish momentum to sustain.
We project the upside of this move to last at least till Rs995 – 1039 in weeks to come. The stop for the trade should ideally be placed a bit below the Rs900 mark.
Kaveri Seed Company (683.5): BUY| Target Rs780| Stop Loss Rs647| Return 14%
In the previous week, the stock made a 52-weeks high at Rs688.4 mark. The stock has given a Flag pattern breakout on the Daily chart with volume confirmation which is a price continuation breakout pattern.
We have seen that from the last couple of days, the delivery volumes have surged sharply, with the delivery percentage rising to 44 percent which is above the normal level, which indicates genuine buying in the scrip.
The Bulls seem to be more confident about the upward move of the stock. The daily RSI indicator placed at around 65 marks which show the strong positive momentum built up for the near future.
We expect a move onto Rs738 from current levels, which if crossed further may move onto 780. A stop loss may be placed at Rs647.
Ashok Leyland (109.4): BUY| Target Rs 124| Stop Loss Rs106| Return 13%
The stock has maintained a bullish sequence of Higher Top Higher Bottom formation on the daily as well as on the weekly charts.
In the last week, the Stock created a 52-weeks high placed at Rs109.9 and closed near that level which is a positive sign for the current momentum.
In the last trading session, the stock has given an ATR breakout on the daily chart which indicates strong positive structure is intact.
The daily RSI oscillator is placed at Rs67 level with a positive crossover which is add-on cause for current bullish momentum to sustain.
We expect, if price sustains above Rs113 (All Time High) then it would further move up around 7% – 10%. The stop maybe placed a bit below the 106 mark.
Sun Pharma (550.8): SELL| Target Rs465| Stop Loss Rs593| Return 15%
We have seen that the stock made a 52-weeks low placed at Rs492.65 mark in June 2017 and bounced back till 591.5 within 7-weeks.
But, in the last week, the stock formed a big Bearish candle and breached the low of past couple of weeks which is again a negative sign for the near future.
We have seen that the medium term 13 (576) & 34 (625) exponential moving averages have remained negatively aligned since last 9 months on weekly charts, which is add-on cause for current bearish momentum to sustain.
The prices are on course for a correction to the 52-week low around the Rs492 mark. We feel this may lead to the Rs480-465 levels further down.
The bearish view would stand negated only on a closing above the Rs593 mark.
Disclaimer: The author is AVP – Technical Research at GEPL Capital. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.[“Source-moneycontrol”]