1. Nifty may hit 9,000; 5 trading strategies to make money in market

Nifty may hit 9,000; 5 trading strategies to make money in market

Nifty has formed a strong bullish candle on daily chart and momentum is all set to hit psychological 9,000

By: | New Delhi | Updated: September 7, 2016 8:50 AM
BSE Sensex, NSE Nifty Nifty has formed a strong bullish candle on daily chart and momentum is all set to hit psychological 9,000 (Photo: Reuters)

Nifty 50 index opened gap up and witnessed sustained buying interest on Tuesday till the end of session and hit fresh 52 weeks high levels. The index closed 133.35 points up at 8,943. Among the 51-components in the Nifty index, 15 stocks also hit their fresh 52-week on Tuesday. In the Nifty 50 index, Tata Motors, Axis Bank, YES Bank, ICICI Bank and Tata Motors DVR gained between 4.24 per cent and 6.90 per cent on Tuesday. On the other hand, Sun Pharma, UltraTech Cement, Tata Power, Coal India and TCS slipped between 0.28 per cent and 1.21 per cent. Chandan Taparia, derivatives analyst, equity research, Anand Rathi Financial Services said, “Nifty has been making higher lows from last five trading sessions and rallied by around 400 points from its recent support of 8,540 zones. Index has formed a strong bullish candle on daily chart and momentum is all set to hit psychological 9,000 then its lifetime high of 9,119 marks.”

Meanwhile, Mustafa Nadeem, chief executive officer, Epic Research gave his five technicals calls. The market expert is bullish on Torrent Power, Gati, Century Ply, FDC etc.

Torrent Power
Recommendation: Buy
Target Price: Rs 195-196 with SL below 182
Why Buy: Torrent Power has taken reversal on daily chart from major support level 182 and closed with bullish candlestick on daily chart. The major moving average crossovers and positive RSI along with increased volume in the stock indicating further positive move, for that the stock is attractive around 185-187 levels for the target of 196 with SL below 182.

Gati
Recommendation: Buy
Target Price: Rs 149 with SL below 136
Why Buy: Gati has taken reversal from strong trend line support and witnessed reversal on daily chart with bullish candlestick. RSI indicator has also taken reversal from lower levels and indicating positive move in the stock till 149 level which is its 23.6 per cent retracement level. Thus its buy from current levels of 140-141 for the targets of 149 and strong support is 136.

Century Plyboards
Recommendation: Buy above Rs 235
Target price: Rs 244-250 with SL of 230
Why Buy: Century Ply has taken a bounce back from its lower trend line support level, also a triple bottom pattern is seen on the daily chart, and if it manages to breach the 235 level then a new 52-weeks high is expected in the script, also RSI showing positive signs about to give a breakout with gaining volumes, so buying above 235 level can be a smart trade in the script.

Intellect Design
Recommendation: Buy above Rs 199 for the targets of 210-215 levels with a Sl of 193.
Why Buy: A double bottom pattern can clearly be seen on the daily chart of Intellect, neck line is at 198.70 level, so buy above 199 level can be safe bet in the stock RSI showing a bounce back from oversold positions also gaining volumes can be seen towards buying, so Intellect is a buy above 199 for the targets 210-215 with a strict stop loss of 192.

FDC
Recommendation: Buy
Target Price: 220 with SL below 190
Why Buy: On weekly chart FDC has given upside breakout of consolidation and strong resistance level of 200.80 and closed above this level on daily chart with bullish candlestick. The positive RSI indicator and high volume the stock is indicating further upside move till 220 level. Our target for the stock is 220 with strong support of 190.

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