Nifty might enter into a trading band of 10,680 to 10,780 before the next leg of up-move towards 10,840, says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management.
Jaydeb Dey
The Nifty ended Thursday 1.15 percent higher at 10,736.15. It opened with a minor gap-up and consolidated with a positive bias for most part of the session. However, aggressive buying in the last hour of trade, led to the index ending Thursday with a huge bullish body candle. It touched an intraday high 10,763.80 and ended the session on a stronger note.
The candle pattern on the daily chart suggests that the benchmark index is likely to challenge its immediate resistance placed around 10,780 levels. A successful breakout above 10,780 may take the index towards 10,840 levels. On the flipside, an intraday retracement may find support on dips around 10,700 and 10,680 levels.
Chart pattern suggest that the bullish momentum is likely to challenge its immediate resistance placed around 10,780 levels.
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Nifty patterns on multiple timeframes show it ended the day the on a stronger note with a huge bullish Marubozu candle. Hence, traders and investors are advised to follow a buy-on-dips strategy in coming sessions.
The Bank Nifty ended Thursday 2.39 percent higher at 26,956.20. A huge rise in the last hour of trade led to the formation of a giant bullish candle on the daily chart. The uptrend is likely to continue and may again challenge its upside resistances placed around 27,100 and 27,200 levels.
Based on a thorough technical study, we recommend buying Yes Bank for the short term:
Yes Bank | Rating: Buy | Target: Rs 360, stop loss: Rs 336, Return: 4%
The stock ended the session with a flag pattern breakout, bullish continuation pattern. Finishing off the session with a long-legged bullish body candle above critical resistance 344 implies the stock is likely to move upward towards 360 levels.
Based on above mentioned observations, we recommend YES BANK as BUY on dips for the short-term target of 360.
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.