After a troublesome week, how oversold is Nifty on the weekly charts? Do you see signs of Friday’s pullback rally continuing this week also?
On the technical front, Nifty has taken support from 89-EMA and should rally as it managed to close above its 200-DMA which points out a bullish momentum in the counter. Further, the index has formed a hammer candlestick pattern with the support of 21-WMA on a weekly chart which suggests strength on the upside. On the daily chart, Nifty has formed a bullish engulfing candle which is a bullish reversal pattern, suggesting a northward journey in the counter.
On the call side, the highest was witnessed at 17,200 followed by 17,300 while the put side was at 16,700 level. The daily momentum indicator — Stochastic — is trading with positive crossover (K% is trading above D%) and bouncing from the oversold zone which adds bullish momentum to prices. The index has formed a good base around 16,700 while 17,200 will act as resistance. Buy on dips is advisable for long term investors.
What should be the key levels to watch out for Nifty Bank traders this week in the new series?
Nifty Bank has support at 37,800 levels while resistance at 39,000 levels.
What is your trading strategy for Adani Enterprises, Adani Green and Adani Ports this week?
Significant amount of profit booking has been seen in bluechip stocks at higher levels, which is good for the long run. Adani Ports has lost 18–20% of its previous value with a strong support zone at levels of around Rs 780. For the short to medium term, it can rally up to Rs 800-820 levels.
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Adani Green was trading in a tight range for a couple of months. Now the scrip has bounced back from 200-DMA level and also has the strong support of rising trend line. It may continue its ongoing trend. We expect that the stock will test Rs 2,500 levels in the coming weeks.
Adani Enterprises, which is the second Adani Group stock that has been added to the benchmark index, has concentrated on developing world-class infrastructure assets that advance national development. Its diverse portfolio is primarily divided into developing enterprises, transportation and logistics, and energy and utilities. The stock has turned into a multibagger over time. In the last 5 years, it has returned 2,700% and in the most recent year, it has returned 135%. After a significant surge, the stock appears to be under moderate profit booking. However, for those that invest for the long term, a correction is just a minor hiccup. Long-term investors can also add if the stock tests Rs 3,000 zone which is also 23.6% of the Fibonacci level.
Nifty Pharma was the biggest sectoral gainer. What’s fuelling the rally and will the up move sustain?
In the past two weeks, Nifty Pharma was largely in an accumulation zone, but bulls are currently driving the pharma index. Despite significant sector sell-offs, Nifty Pharma managed a gain of 2.86% last week. Once the 13,000 levels are maintained, we anticipate more positive movement till the 13,300–13,500 zone. Along with a significant volume shift in Dr Reddy’s Lab and Divi’s Lab, we also observe a strong momentum developing in heavy hitters like
Which are the 3-4 stocks that would be on your radar for the week?
Price action suggests strong traction is expected above Rs 1,130 levels, confirming bullishness in the stock which is trading above its 50-simple moving averages, ratifying support in price action.
The price has traded above Ichimoku Cloud & a positive crossover is indicated in RSI and MACD in the momentum indicator as well which suggests continuity in the bullish trend in the near term.
The stock is trading above the middle Bollinger band in the weekly chart as well. Breadth indicator suggests a rise in on-balance volume, confirming positive volume flow in the scrip.
Hence, based on the above technical structure one can initiate a long position at CMP Rs 1,104. However, on the safer side nearby Rs 1,085-1,090 levels would be a better range to enter. Closing and sustaining above Rs 1,130 will lead towards Rs 1,220 levels in the coming days. A stop loss can be kept as Rs 1,040.
On the weekly chart, the stock has been trading with the support of a middle Bollinger band which suggests a positive bias.
Additionally, the stock has formed a strong base around Rs 2,700 level while Rs 2,800 will be the short-term resistance level, crossing above the same can show more upside rally.
A daily momentum indicator Stochastic shows positive crossover which adds more bullishness to the price.
Hence, based on the above technical structure one can initiate a long position at CMP Rs 2,770.
However, nearby Rs 2,745-50 levels would be a better range to enter. Closing and sustaining above Rs 2,800 will lead towards Rs 2,950-2,970 levels in the coming days. Stop loss can be kept as Rs 2,670.
On the big time frame, the stock has given a bullish breakout of rising wedge pattern at Rs 600. Trading above all key moving averages suggests that the short to long-term trend is positive. The stock has established a strong foundation near the neckline of the head and shoulder pattern and 200-simple DMA which is placed at Rs 560 levels.
On the weekly chart, the price has been trading above the upper leg of “Bollinger Band” which suggests a bullish rally will continue further in the near term.
Furthermore, the stock has moved above “Ichimoku Cloud” with a positive crossover between the conversion line and the baseline, which shows the upside movement in the counter.
A daily momentum indicator Stochastic & MACD shows positive crossover which adds more bullishness to the price.
As per the above technical parameters, the Stock is looking bullish on the chart, one can buy the KPIT at CMP Rs 659, and a fall to Rs 635 is a good buying opportunity for a target of Rs 725-760 levels while on the downside, the support comes at Rs 590 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)