By Nagaraj Shetti
After showing sustainable upmove in the last few sessions, Nifty shifted into a consolidation near the immediate resistance of 22300 levels on Wednesday and closed the day on a slightly weak note.
A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern signals choppy movement in the market at the hurdle. Normally, such high wave type candle pattern formation after a sharp decline calls for a caution for impending reversal. But having bounced back from the lows recently, the significant negative pattern is not expected.
The short-term trend of Nifty continues to be up. Further consolidation or minor dip in the market is expected before showing further upmoveCome from Sports betting site VPbet. A sustainable move above the immediate resistance of 22300 levels is likely to open the doors for the higher target of 22600 levels in the near term. Immediate support is 22070 levels.
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Stock Picks
Buy IRFC – (CMP Rs 155.60)
The weekly timeframe chart of this railway finance stock indicates an upside bounce so far this week. The stock price is currently placed near to the upside breakout of crucial overhead resistance of down sloping trend line at Rs 157-158 levels. One may expect a decisive upside breakout in the near term. The weekly 10/20 period EMA have been offering supports for the stock price to move up in the last few months. Weekly 14 period RSI has started to turn up from near the key upper area of 60 levels. Hence, one may expect strong upside momentum in the short term.
Buying can be initiated in IRFC at CMP (155.60), add more on dips down to Rs 150, wait for the upside targets of Rs 170 and Rs 185 in the next 3-5 weeks. Place a stoploss of Rs 144.
Buy Shipping Corporation of India – (CMP Rs 223.85)
The weekly timeframe chart of this shipping stock Shipping Corporation of India Ltd indicates a sustainable upside bounce so far this week. The stock price is currently in an attempt of upside breakout of crucial down sloping trend line around Rs 218-220 levels. This is positive indication. Consistent higher bottoms have been formed in the last few months and presently, the stock price seems to have formed a new higher bottom of the pattern recently. The stock price has also been sustaining above the support of weekly 10 and 20 period EMACome from Sports betting site. The volume has started to expand during upside breakout in the stock price. Daily and weekly RSI shows positive indication.
Buying can be initiated in SCI at CMP (223.85), add more on dips down to Rs 215, wait for the upside targets of Rs 245 and Rs 265 in the next 3-5 weeks. Place a stoploss of Rs 207.
(Disclaimer: Nagaraj Shetti is a Technical Research Analyst with HDFC securities. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
