Nifty in a choppy trend; markets expected to remain stock specific
Nifty has been consolidating for the last 6 weeks in the weekly closing range of 14,550-15,200. On March 19, Nifty found support in the gap zone of 14,336-14,469 and registered a sharp recovery. On the same day, Nifty formed a bullish Piercing Line candlestick pattern on the daily chart, indicating a short-term bullish reversal. This week started with a narrow move, and Nifty has been gradually moving up since.
It is wise to remain conservative at higher levels. Indices are in a choppy trend and many whipsaws are taking place frequently. Buy on dips and sell on rallies kind of strategy is working well for traders. Momentum and follow-ups are missing in the current trend of the market.
Support for the Nifty is seen at 14,500 and with that as a stop loss, traders should remain bullish. Resistance for the Nifty is seen in the range of 15,000-15,100 range.
Stock recommendation:
Buy Happiest Minds Tech (Rs 546): | Target Rs 580 | Stop-loss Rs 510
Midcap IT stocks have been performing very well for the last couple of months. The stock has been consolidating in a narrow range for the last five consecutive weeks between the weekly closing range of 530 and 540. In the month of February, the stock broke out above the previous all-time high and closed the month with a big bull candle. The stock has been trading above all important moving average parameters. Indicators and oscillators like RSI, MACD and DMI have turned bullish on short term charts.
Buy Godrej Industries (Rs 520): | Target Rs. 555 | Stop-loss Rs 500
The stock price has broken out from a bullish inverted head and shoulder pattern on the monthly charts. It has recently taken out the crucial double top resistance placed at 483 odd levels. Moving average and Oscillator setup are bullish on the daily and weekly charts.
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