By Vishal Vasant Wagh
The Nifty index opened flat to positive in previous session but failed to hold above 18400 zones and sank towards 18256 levels in the first part of the days. Profit booking was seen in the index at a higher zone and closed with losses of around 33 points. It formed a bearish candle on the daily frame. An important level to watch on the upside is 18400. Sustain above the same we might head towards 18600 levels. On a daily chart formed Bullish candlestick, indicates a positive structure in the market.
On a daily chart formed Bullish candlestick, indicates a positive structure in the market. On the weekly scale, Nifty made a Bullish candle and manage to close above the previous swing high which points out a positive setup in the market. In addition, the Technical indicator Ichimoku cloud suggests that the price is trading above the cloud which, now acting as a support for the market. On the momentum front, the MACD histogram is hovering in the positive territory with an inclining trajectory that point to The Relative Strength Index RSI (14) on the daily chart is 63 marks. The upside resistance is placed near the 18600 and18800 levels. Support exists at 18150 to 17950 levels.
Bharti Airtel: BUY
CMP: Rs 837.30| Target Rs 940 |Stop Loss Rs 780| Return 12.80%
The stock is outperforming the benchmark index from the last couple of weeks on a relative basis, where the benchmark index is not able to cross 18450 and the counter has broken its all-time high which is placed at 780 levels. The prices have been rising continuously with Higher Highs and Higher Lows formation from Oct 2018 on monthly scale. As per the Elliott wave’s analysis, the price has successfully completed its four waves and currently, the price has been moving in the 5th wave which may end near 980 levels. After one year of consolidation, the prices have witnessed a breakout of Sideways Channel and trading above the prior supply zone indicating bullish strength.
Prices have formed a strong basing formation of the sideways channel from the level of 630 to 780 indicating strong support. On a weekly timeframe, the majority of the indicator and oscillators are indicating bullish momentum. The counter is also trading above the 50 Exponential Moving Averages, which indicates a possible continuation of the uptrend. On the momentum front, the MACD histogram is hovering in the positive territory with an inclining trajectory that point to bullish momentum. The RSI (14) has crossed near the 69 mark which also signals strength in momentum on the higher side.
PNB : BUY
CMP: Rs 45.85| Target Rs 42 |Stop Loss Rs 53.10| Return 15.6 %
On a weekly time frame, PNB has witnessed a sharp upside rally from the bottom which is placed at 28.05. The price has formed a Double Bottom Pattern and is trading just below the neckline. The price is continuously showing strength and builds up near the breakout suggesting positive bias.
The PSE sector and banks are outperforming benchmark indices, which will add more strength to the stock. The Exponential Moving Averages have witnessed a Golden crossover and the price has strongly settled above its 20 & 50 – EMA which is placed at 38.40 & 36.90 levels respectively. The RSI (14) has also trading above 70 levels confirming bullish strength.
(Author Vishal Vasant Wagh is the Head Of Research at Bonanza Portfolio. The views expressed are the author’s own. Please consult your financial advisor before investing)