Nifty short-term trend positive, must hold above 17260 for considerable upmove; buy these two stocks for gains | The Financial Express

Nifty short-term trend positive, must hold above 17260 for considerable upmove; buy these two stocks for gains

The short-term trend of Nifty is range bound with positive bias. The market is now in an attempt to form a higher bottom formation around 16950 levels.

Nifty short-term trend positive, must hold above 17260 for considerable upmove; buy these two stocks for gains
A sustainable move above the hurdle of 17260 levels could confirm more upside for the near term. Immediate support is placed at 16950 levels

By Nagaraj Shetti

After showing sharp weakness on Tuesday, Nifty shifted into a sustainable upside bounce amidst volatility on Wednesday and closed the day higher by 140 points. After opening on a positive note, the market showed high volatility in the early-mid part of the session. Intraday buying emerged from the day’s low of 16960 levels and the market continued its upside momentum till the end. A reasonable positive candle was formed on the daily chart, that has placed beside the long bear candle of Tuesday. Technically, this pattern indicates a comeback of bulls from the support of 200day EMA around 16900 levels.

This is a positive indication and a sustainable move above the hurdle of 17250 levels could be considered as a confirmation of upside reversal. After the formation of minor degree lower tops and bottoms on the daily chart during its recent weakness, the market is now sustaining above 16950 levels in the last couple of sessions. Further upside from here could also confirm a formation of higher bottom at 16950 levels.

The short-term trend of Nifty is range bound with positive bias. The market is now in an attempt to form a higher bottom formation around 16950 levels. A sustainable move above the hurdle of 17260 levels could confirm more upside for the near term. Immediate support is placed at 16950 levels.

Computer Age Management Services Ltd – CAMS: Buy

The weekly timeframe chart of Computer Age Management Services Limited (CAMS) indicates a sustainable upside bounce so far this week. After showing a sideways range movement in the last three weeks, the stock price is now in an attempt to break above the range at Rs 2570- 2600 levels. After the formation of intermediate downtrend with lower tops and bottoms formations over the last many months, the stock price has nullified the bearish pattern recently. Presently, started to form a positive sequence like higher tops and bottoms on the weekly timeframe chart. Buying can be initiated in CAMS at CMP (Rs 2572), add more on dips down to Rs 2475, wait for the upside targets of Rs 2780 and Rs 2965 in the next 3-5 weeks. Place a stoploss of Rs 2395.

PFIZER Ltd: Buy

The stock price has witnessed a sharp upside bounce recently, after shifting in to a narrow range movement over the last many weeks. The present chart pattern indicates a possible bottom reversal for the stock price around Rs 4060 levels. Now, the stock price is in an attempt of upside breakout of the range movement around 4400 levels. The volume has started to expand during upside breakout in the stock price and weekly RSI shows positive indication. Buying can be initiated in PFIZER at CMP (4420), add more on dips down to Rs 4300, wait for the upside targets of Rs 4770 and Rs 5025 in the next 3-5 weeks. Place a stoploss of Rs 4175.

(Nagaraj Shetti is a Technical Research Analyst at HDFC Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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First published on: 13-10-2022 at 08:37 IST