Infosys, Tata Motors among 5 technical stocks to buy; watch these key support, resistance levels for Nifty
February 9, 2021 9:01 AM
The market has established one more bullish candlestick formation on a daily chart. Commodities have again started recovering from lows and have boosted the sentiment of the market.
The Nifty closed above the level of 15100 and the Sensex ended at 51348 levels.
By Shrikant Chouhan
Nifty AUTO, METALS and INFRA indices helped the market to close higher. From the basket of defensive sectors, we saw solid gains for the IT index. FMCG and PSU Banks marginally closed in the negative territory. Yesterday, the market did well mainly due to exceptional strength in the global markets and weakness in the dollar index. Commodities have again started recovering from lows and have boosted the sentiment of the market. The Nifty closed above the level of 15100 and the Sensex ended at 51348 levels.
The market has established one more bullish candlestick formation on a daily chart, however, it has left an exhaustion gap that would invite short term weakness if the Nifty/Sensex breaks below the level of 15040/51140. On the higher side, hurdles would be at 15190/51500 and at 15270/51750 levels. The strategy should be to take profit on long positions between 15150 and 15250 (51500/51750 for the Sensex). Expect a short-term weakness below the level of 15040/51140 levels. Supports would be at 15040/51140 and at 14850/50500 levels.”
Post profit taking from all-time highs of 1392 stock was into consolidation and it has given a breakout from triangle formation with a strong bullish candle on the daily chart with incremental volume activity.
The stock had been a consistent outperformer in its space from the last few weeks and after the breather of the last three trading sessions it strongly reversed its up move by forming a bullish continuation chart pattern on the daily chart.
Post correction stock is in a range bound movement and it has formed a good base around the 2370 zone. Hence reversal from its double bottom chart formation is visible along with decent volume activity on the daily chart.