On the last day of the trading week, Markets closed strong after a flat opening. Sensex closed up 254 points at 39983 while Nifty closed up 82 points at 11762. Market expert, Sumeet Bagadia, Executive Director at Choice Broking shares his view on Nifty and Bank Nifty. Also, Sumeet recommends trading in HDFC Bank (Largest private bank in banking space), UltraTech Cement (Largest Company in cement sector), Tata Steel (Metals Sector) and TVS Motor (Auto Sector).

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

View on Nifty:

On a daily chart, the index has good support of its previous top which is placed at 11620 levels which provides cushion to the index from where a bounce back can be seen. Moreover, the index has been trading above its 50 Days Moving Average since the last many days which shows a positive trend for the time being. Furthermore, the index has been trading in an Upward Rising Channel formation since the last many days which is a continuation formation. A daily momentum indicator RSI reading is at 57.87 levels above its 50 mark, which points out a positive breathing space in the index. Based on the above technical structure, Sumeet is expecting an upside movement in the index upto the level of 12050-12200 while downside support comes at 11600.

View on Bank Nifty:

On a daily chart, the index has been trading in a range bound movement since the last many days which indicates range bound movement for an upcoming trading session between the range of 22900 to 24100. However, the index has been trading above its 50 Days Moving Average since the last many days which shows a positive trend for the time being. Furthermore, the index has been trading in an Upward Rising Channel formation which is a continuation formation and indicates further upside movement in the index. A daily momentum indicator RSI reading is at 58.55 levels with a positive crossover which points out for a positive breath in the index. Based on the above technical structure, Sumeet is expecting a range bound movement for the time being based on the daily construction; however, looking at the other parameters, medium trend for the index is up

View on HDFC Bank:

On a daily chart, the stock has been trading in an Upward Rising Channel formation since the last many days and it seems that the stock may touch to its upper band of the formation. Moreover, the stock has taken the support of its 100 Days Moving Average which shows a positive trend for the medium term and based on which we may see a good spurt in the counter. Furthermore, the stock has very good support of its recent two tops from where a bounce back can be seen in the counter. A daily momentum indicator RSI’s reading is at 62.71 levels with a positive crossover which points out for a positive breath in the counters. Based on the above technical structure, Sumeet is expecting a good upside movement in the counter upto the level of Rs 1350 while downside support comes at Rs 1120.00.

View on Ultratech Cement:

On a daily chart, the stock has been trading in an Upward Rising Channel formation since the last many days and it seems that the stock may touch to its upper band of the formation. Moreover, the stock has been trading in a Higher Top Higher Bottom formation on a smaller time frame which is a continuation formation. Furthermore, the stock has been trading above its 50 Days Moving Average since the last many days which shows a positive trend for the medium term and based on which stock may see a good spurt in the counter. A daily momentum indicator RSI’s reading is at 71.16 levels with a positive crossover which points out for a positive breath in the counters. Based on the above technical structure, Sumeet is expecting a good upside movement in the counter upto the level of Rs 4750 - Rs 5000 while downside support comes at Rs 4200.

View on Tata Steel:

On a daily chart, the stock has been trading in a Broadening Rising Wedge formation since the last many days and recently the stock has taken the support of its Lower Band of the formation which indicates an upside movement in the counter. Moreover, the stock has been trading above its 100 Days Moving Average since the last many days which shows a positive trend for the medium term and based on which stock may see a good spurt in the counter. The stock has formed a Bullish Harami Candlestick formation with the support of the lower band of formation which is a Bullish Reversal formation. A daily momentum indicator RSI’s reading is at 56.89 levels with a positive crossover which points out for a positive breath in the counters. Based on the above technical structure, Sumeet is expecting a good upside movement in the counter upto the level of Rs 445 to Rs 465 while downside support comes at Rs 360.

See Zee Business Live TV Streaming Below:

View on TVS Motor:

On a daily chart, the stock has been trading near to its Lower Band of an Upward Rising Channel formation which suggests a bounce back movement in the counter. Moreover, the stock has good support of its 50 Days Moving Average as per shows in the chart which indicates a positive trend in the counter. On a weekly chart, the stock has already given a breakout of its Upper Band of Broadening Falling Wedge Formation which is a good sign for a north side movement. A daily momentum indicator RSI’s reading is at 53.10 levels and has been trending in a sideways movement; however, it has good support at 50 Marks which points out for a bounce back movement. Based on the above technical structure, Sumeet is expecting a good upside movement in the counter upto the level of Rs 490 – Rs 530 while downside support comes at Rs 440.

(Authored by Rahul Kamdar)