Nifty may resume up trend; BUY MAS Finance, GMM Pfaudler, says Vinay Rajani


Nifty View

The Nifty has been finding support around the previous breakout levels of 18,100. The Nifty is still in the gap area of 18,103- 18,259, which was formed on November 11, 2022. These gaps some time acts as a strong reversal point, considering when few more technical rationales also support the probable bullish trend reversal.

On the week ended November 11, 2022, the Nifty surpassed crucial double top resistance of 18,100 level. The Nifty has now retraced back to the previous breakout level of 18,100 and there are good chances that it finds the support there and resumes the up trend.


(MAS Finance)

Buy Range: Rs 874 – Rs 830

Targets: Rs 982; Rs 1,030

Stop Loss: Rs 816

On the week ended November 04, 2022, a downward sloping trend line breakout was registered on the weekly charts. The price breakout was accompanied by jump in volumes.

Now, the stock has retraced back to the previous breakout line and could resume its uptrend. The stock is placed above all important moving averages, indicating bullish trend on all time frames.

The stock price has been forming higher tops and higher bottoms on daily chart.


GMM Pfaudler

Buy Range: Rs 1,917 – Rs 1,775

Targets: Rs 2,060; Rs 2,170

Stop Loss: Rs 1,740

On the week ended September 02, 2022, the stock broke out from multiple top resistance of Rs 1,750 and also from the consolidation with significant jump in volumes. Post breakout the stock rallied towards Rs 2,097-odd level and fell in the consolidation mode.

The stock continued to remain in narrow consolidation for last two months. On November 16, 2022, the stock touched lower band of the consolidation and reversed north with rise in volumes.

Indicator and oscillators like RSI and MACD have been showing strength in current uptrend. The stock price has been finding support at its 50-day EMA, placed at Rs 1,821.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).

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