After correcting from a high of 9889 and then consolidating in a range, Nifty took out the recent highs of 9451 on Wednesday.
By Subash Gangadharan
After correcting from a high of 9889 and then consolidating in a range, Nifty took out the recent highs of 9451 on Wednesday (Although it closed lower). The Nifty is now consolidating just below the short term trend reversal levels of 9451, suggesting there is a good probability of the index breaking out and crossing the highs of 9451 convincingly.
Upside targets in this scenario are at 9585 and 9889 (the previous intermediate highs). Crucial downside supports to watch for resumption of weakness are at 9116-9043.
Buy BEL (CMP is Rs.65.7)
Stop Loss: 62
After falling sharply for several weeks and almost testing the intermediate supports of 56, BEL has bounced back smartly and made a double bottom pattern on the daily charts. The stock has then gradually moved higher and made a higher bottom at 62.25 on the intraday charts today, on the back of higher than average volumes.
This indicates that the stock is ready to continue the next leg of the underlying uptrend. Technical indicators too are giving positive signals as the 20 minute MA is currently above the 50 minute MA on the 15 minute intraday charts. This is a positive signal for the near term at least. The 14-day RSI too is in rising mode.
We, therefore, recommend buying BEL between 63 and 66. Targets are at 74, while stop loss is at 62.
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Buy Havells (Rs.511.2)
Stop Loss: 480
Havells has bounced back smartly from the lows of 483, where it has made a double bottom on the daily charts. Today’s bounce back also came with above average volumes, which is healthy. In the process, the stock has also moved above the 471-498 trading range in which it was trading recently, which is a sign of strength. Momentum technical indicators too are giving positive signals as the 14-day RSI is in rising mode.
We therefore recommend buying Havells between 495 and 515. Targets are at 590, while stop loss is at 480.