“Nifty is likely to get stuck in the broader trading band of 10,780 to 10,640 before next leg of up-move.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
Jaydeb Dey
The Nifty on Tuesday ended 0.02 percent higher at 10,717.80. Day long consolidation in the price band of 10,760 to 10,690 followed by subdued closing led to end the session with a bearish body candle.
Critical support of 10,700 remained intact on closing basis. Day’s high was 10758.55. However the chart pattern suggests, Nifty may again face resistance on rise around 10,780 levels. Hence, staying cautious on rise is advised. Nifty getting stuck in the price band of 10,700 to 10,780 is likely.
On the Nifty hourly chart; it is trading well above all the critical moving averages. Hence dips towards 10,700 and 10,640 might again get bought in. Upside pivotal resistance is placed around 10,780.
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Nifty patterns on multiple time frames show; Nifty managed to close above critical support placed around 10,700. However, bearish candle on daily chart suggests, it may again face resistance on rise around 10,780 levels.
The Bank Nifty previous session ended 0.92 percent higher at 26,090.50. Upside critical resistance is placed around 26,140. Downside pivotal support is placed around 25,680.
Based on thorough technical study, the research firm recommends Interglobe Aviation which can give up to 4 percent return in the near short term:
Interglobe Aviation | Rating: Buy | Target: Rs 1240, stop loss: Rs 1165, Return: 4%
After a steep correction from around Rs 1500 levels, the stock has come down to its previous multi bottom area. Consolidation in last 2-3 sessions while the stock already has reached its oversold zone on daily chart brightens the possibility of a pull back towards its 200 EMA placed around Rs 1240.
Based on the above mentioned observations, the firm recommends Interglobe Aviation as a buy on dips for the short-term upside target of Rs 1240.
Disclaimer: The author is Technical Analyst at Stewart & Mackertich Wealth Management Ltd. The views and ideas expressed above may have been suggested to the clients of Stewart & Mackertich Wealth Management Ltd. It is advised that investors/traders should consult with their Certified Experts before taking any investment decision.