By Subash Gangadharan
Nifty remains in a short term downtrend and has been making lower tops and lower bottoms for the last few weeks. There has been a healthy bounce back seen in the last few sessions and Nifty is now trading just below the previous swing high of 22205.
A close above 22205 will reverse the current downtrend and set the Nifty to move higher and test its life highs of 22527. Most of the sectoral indices too are showing strength, which increases the probability of a breakout on the upside.
Buy Prism Johnson (177.85): | Target Rs. 192 | Stop-loss Rs 169
On 27th March 2024, stock has broken out of its recent trading range on the back of above average volumes. This breakout has happened after the stock has made a double bottom around the 163 levels. The stock is now trading above the 20 and 50 day SMA and momentum readings like the 14-day RSI are climbing higher, which indicates possible bullish trend reversal for the stock.
Buy Quess Corp (516): | Target Rs. 545 | Stop-loss Rs 495
Stock price has formed bullish double bottom formation near 464 levels and reversed north from the 200 day EMA. Stock seems oversold on the chart and RSI oscillator has also given a breakout from around 50 levels, which is encouraging. On lower time frame stock price has formed higher top and higher bottom, indicating bullish trend reversal.
(Mr. Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing)