BUY MIDHANI | TARGET: 218 | STOP LOSS: 190 MIDHANI has been consolidating in a narrow range post-trend-line breakout on the daily chart from the past couple of trading sessions indicating base formation before another huge leap. The stock price is placed well above all the major moving averages suggesting inherent strength in the counter. Even the stock is testing the previous swing high and any breach above the same could trigger a fresh round of rally in near future. Hence one could bet on the counter from a short to medium term perspective.
BUY PNB | TARGET: 42 | STOP LOSS: 35 PNB has been trading in a cycle of higher lows for the past couple of weeks and is currently placed near the cluster of its major moving averages on the daily time frame, well above the unfilled gap suggesting strength at lower levels. On the oscillator front, 14 period RSI has seen some resurgence from the lower regions of 33-39 and is now comfortably placed with positive crossover soaring northwards a
Markets traded with negative sentiments through-out the day on Thursday on weaker global cues as Nifty slipped below 15,100, dragged by metals and weakness in financial services stocks. The Nifty managed to close at 14,906, slashing 124 points, PSU Banks and Realty sector traded with positive sentiments whereas metals, private banks and automobiles closed in the red mark with marginal loss. Nifty bank closed at 33,334, slashing 351 points from the previous day’s closing. As per weekly option data, handful of call writing on higher strikes, ranging from 15,100 to 15,300, happened which shows Nifty would face stiff resistance in the sub15,200 zone.15,000 will act as support as maximum put OI is placed here. We can witness short-covering move along with addition of fresh position only if Nifty breaches 15,200. Therefore, traders should try to create short position keeping close eye on 15,200.
Read more about Nifty outlook & trading ideas by HDFC Sec: Buy Berger Paints, ICICI Bank on Business Standard. The immediate target for the Nifty50 index is seen above the all-time high of 15,432 odd levels
Nifty has been trading in the downward sloping channel since February 16, 2021. Trading in channel indicates that Market is passing through consolidation phase. During this phase, trend remain choppy and direction less. However, looking at the recent developments on the Nifty charts, it seems that Index is likely to breakout from the consolidation soon. Major reason has been the strong breadth in the Market. Strong Advance-Decline ratio in consolidating market indicates the chances of upward trend sooner or later. Indicators and oscillators like MACD, DMI and RSI have shown some early sign of breakout in the Index. Daily MACD has reached above the equilibrium line. RSI has been positing higher bottoms and has also shifted its range upward. DMI indicator has turned bullish, as +DI has crossed –DI line on the upside.
Stop loss: 327 We’re seeing a mixed trend within the banking pack and Bandhan Bank is seeing selling pressure on every rise. It has been trading below the long-term moving averages on multiple time frames as well which further adds to the negativity. We feel traders should maintain few short positions also in the current market scenario.
==========================
Disclaimer: Ajit Mishra is VP - Research at Religare Broking. Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive comment