Stock saw decent pullback however it is struggling near Rs 730 – 740 range which coincided with its previous resistance zone as previous support became an immediate hurdle, says Aditya Agarwal of Way2Wealth Brokers.
By Aditya Agarwal
Way2Wealth Brokers
The Thursday’s sharp up move in Indian markets can be termed as a Bear Trap as Nifty opened higher with a significant gap and eventually surpassed the crucial resistance zone of 10280 – 10300 levels.
In that process, Nifty confirmed its breakout from ‘Downward Sloping Channel’ pattern.
The bearish engulfing candle formed on Wednesday’s trade was negated as Nifty closed above the pattern high of 10280.
At this juncture, the hourly RSI (14) signals a Bearish Divergence hence it’s prudent to wait for some pullback to enter a long position. On the higher side, Nifty is likely to extend its ongoing short covering move towards 10450.
Whereas on the lower side, 10100 will act as a strong support and till the time index is holding above this level every meaningful correction is an opportunity to enter in the long position.
Bharat Forge: SELL around 730 – 735| Target 670| Stop loss 760| Time frame 15 to 21 trading session| Return 7%
After posting an all-time high of 798, the stock corrected sharply and hit a low of 678. Subsequently, stock saw decent pullback however it is struggling near 730 – 740 range which coincided with its previous resistance zone as previous support became an immediate hurdle.
The hourly RSI (14) is signaling an overbought condition. Hence, we recommend traders to go short in a range of 730 to 735 with a price target of 670. A stop loss should be placed at 760.
Disclaimer: The author Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.