Nifty 50 index reclaimed the psychological level of 8,800 in the morning trade on Wednesday tracking global cues. Asian peer Nikkei 225 wiped off its early losses and was trading nearly 200 points up at 16,684 after Bank of Japan said it will continue to purchase assets like government bonds at a rate of about 80 trillion yen ($787 billion) a year, seeking to achieve the 2 percent inflation target that they say could help spur sustained growth.
At 10.28 am, benchmark Nifty was trading 24.40 points up at 8,800.30 24.40. On Tuesday, the index closed 32.50 points down at 8,775.90 and formed a ‘Bearish Belt Hold’ candle on daily chart indicates that follow-up buying is missing at higher levels but an important part is sustained buying at lower zones is keeping the limited downside.
On the further movement of domestic equity markets, Chandan Taparia, derivatives analyst, equity research, Anand Rathi Financial Services said, “Now, Nifty has to cross and hold above 8,820 zones to witness an up move towards 8,860 then 8,920 zones while on the downside holding below 8,750 might cause a profit booking decline towards recent swing low of 8,688 zones.”
For short term traders Mustafa Nadeem, chief executive officer, Epic Research gave his technical calls. The market expert is looking positive on Surya Roshi, Kwality, Inox Wind and GNFC.
Surya Roshni (Buy)
Target price: Rs 216-220; Stop loss: Rs 202
Why Buy: Surya Roshni has given breakout to strong resistance level of 209 which is its all time high on the daily chart rose with increased volume. The stock confirms the breakout by closing above this level with bullish candlestick, the importance moving averages crossovers and positive RSI indicating further upside move in the stock in upcoming session. Thus, Surya Roshni is a good buy opportunity around 209 level for the target of 216-220 with SL of 202
Kwality Ltd (Buy)
Target Price: Rs 129; Stop Loss: Rs 118.50
Why Buy: Kwality on the daily chart has reversed upside taking support of trend line and closed with bullish candlestick on daily chart, also the stock closed with a bullish doji candlestick on four hourly chart that indicating a good upside move from current level, increase in the volume was seen in the last trading hours on Tuesday, thus the stock is looking attractive to buy for the target of 129 in near term with stop loss of 118.50.
Inox Wind (Buy above Rs 204.50)
Target Price: 214; Stop Loss: Rs 197
Why Buy: Inox wind on daily chart is trading range bound from last two sessions but in Tuesday’s trading session the stock has given breakout to near resistance level of 204.50 and closed with bullish candlestick on daily chart taking good support of 25-day EMA. Thus with positive RSI indicator the stock is looking good to buy around Rs 204.50 for the target of Rs 214 with stop loss of Rs 197.
Gujarat Narmada Valley Fertilizers and Chemicals Limited (Buy above Rs 177.50)
Target Price: Rs 185; Stop loss: Rs 165
Why Buy: Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC) on the daily chart has formed a double bottom pattern and has confirmed the breakout in Tuesday’s trading session with bullish move. Now the stock is trading near strong resistance level of 177, the RSI indicator is also indicating bull side move, thus after breaking resistance level the stock will give good upside rally, so one can buy the stock above Rs 177.50 for the target of Rs 185 with stop loss of Rs 165.