By Vishal Wagh
The Nifty index is likely to trade sideways throughout the day. An important level to watch on the upside is 18550. Sustain above the same, we might head towards 18800 levels. On the daily chart, formed a Doji candlestick. Nifty has been moving higher high and higher lows formation on an hourly chart confirming the bullish trend. On the weekly scale, Nifty made a Bullish Engulfing candlestick which points out positive momentum in the near term.
In addition, the technical indicator Ichimoku Cloud suggests that the price is trading above the conversion line and base line which, now acting as support for the market. The momentum indicator Relative Strength Index RSI (14) has also sustained above 65 which indicates bullish strength. The upside resistance is placed near the 18650 & 18800 levels. Support exists at 18300 to 18100 levels.
JSW Steel: BUY
CMP: Rs 726.20| Target: Rs 849.90| Stop Loss: Rs 669.50| Return: 17.03%
The stock is outperforming the benchmark index from the last couple of weeks on a relative basis and trading near its all-time high which is placed at 790 levels. After a long bullish rally, the price has witnessed profit booking from the upper level and has been consolidating from the last year. On a daily chart, the price has been rising continuously with higher highs and higher lows formation from the last couple of days and trading near to breakout zone indicating bullish strength.
The price has moved above Ichimoku Cloud with a positive crossover between the conversion line and the baseline, which shows the upside movement in the counter. On a weekly timeframe, the majority of the indicator and oscillators are indicating bullish momentum. The counter is also trading above the 20 Exponential Moving Averages (EMA) which placed at the 670 mark suggesting strong support for the counter. The RSI (14) has crossed the 60 mark which also signals strength in momentum on the higher side.
ACC : BUY
CMP: Rs 2507.25| Target: Rs 2799| Stop Loss: Rs 2349| Return: 11.64%
On a weekly time frame, ACC has again crossed the neckline of the inverted head and shoulder pattern after failed breakout indicating bullish strength. From the last two weeks, the price is continuously showing strength and building up just above the neckline suggesting positive bias. The CNXINFRA is outperforming benchmark indices and near to breakout, which will add more strength to the stock. The price has reversed from the middle Bollinger Band and rising toward the upper band of Bollinger confirming the internal strength.
The Exponential Moving Averages have witnessed a Golden crossover and the price has strongly settled above its 20 & 50 – EMA which is placed at 5086 & 4936 levels respectively. On the momentum front, the MACD histogram is hovering in the positive territory with an inclining trajectory that points to a strong momentum.
(Author Vishal Wagh is Head Of Research at Bonanza Portfolio. The views expressed are the author’s own. Please consult your financial advisor before investing)