July Series started on a positive note, especially on the Banking front. The Banking stocks have provided a breakout above 35000 levels which is quite positive for the month of July.
By Jay Thakkar
July Series started on a positive note, especially on the Banking front. The Banking stocks have provided a breakout above 35000 levels which is quite positive for the month of July. The Nifty has strong resistance in the zone of 15900-15950 levels which it needs to take off on a closing basis in order to gain further strength whereas it has strong support at 15700 in the near term whereas at 15500 in the medium term. The Nifty Bank has immediate support at 35000 levels and below that, at 34500 levels whereas it has resistance at 35500 levels and above that, it is likely to hit a lifetime high.
BUY Axis Bank
CMP: 763 TGT 783/803 SL 743
Axis Bank has provided a breakout from the falling channel as well as provided a buy crossover in its daily momentum indicators indicating that the short term trend has reversed from down to up. With this breakout, wave III of 5 up seems to have started.
BUY CCL Products
360 TGT 380/390 SL 349
The stock has provided a breakout from the falling trend line and with that, it seems to have completed its wave 4 consolidation or correction on the daily/weekly charts and from here on it is likely to hit a new 52 week highs.
BUY Abbot India
CMP: 16781: TGT: 18190 SL 16170
ABBOT INDIA has provided a nice breakout from the falling channel with a clear buy crossover in its daily as well as weekly momentum indicator. The stock seems to have completed its wave 4 and wave 5 up seems to have started.
CMP: 219: TGT 240/250 SL 209
CUPID seems to have completed its wave E of the symmetrical triangular pattern and from hereon it is likely to inch towards the upper end of the pattern.
CMP: 410 TGT 440/455 SL 390
The stock has provided a breakout from the rectangular pattern after having an impulse move on the way up. It has been consolidating above the pattern for a couple of weeks but now the momentum indicator on the daily chart has turned quite oversold indicating a reversal in the short term. It also seems to have completed wave E down of the symmetrical triangular pattern formed on the daily charts which are also positive for the short term.
(Jay Thakkar is the VP and Head of Equity Research at Marwadi Shares and Finance. The views expressed are the author’s own. Please consult your financial advisor before investing.)