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Wednesday, 21 March 2018

Nifty at critical support of 10,000 levels; Buy BHEL & Voltas for 5% return in short-term

"We prefer buying on dips, irrespective of US FOMC meet outcome, as long as the critical prolonged upward trending channel support placed around 10,000 mark is intact.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

 http://www.bigprofitbuzz.com/free-trial/The Nifty previous day ended 0.3 percent up at 10,124.35. It reacted up sharply from day’s low 10,049.10 towards finishing off the session above 10,100 mark. But, the pullback remained capped as it failed to progress beyond 10,155.

On the brighter side, our dual support zone of 10,030 to 10,000 is still well intact. Ending the session with a bullish body candle suggests it may continue taking support around 10,030 and 10,000 in coming sessions as well. Hence, selective buy on dips is advised.

However, US FOMC meet on Federal Reserve’s rates, scheduled to be held on Wednesday, is going to be the next trend determining factor. On a similar note, we prefer buying on dips, irrespective of US FOMC meet outcome, as long as the critical prolonged upward trending channel support placed around 10,000 mark is intact. FREE TRAILS TIPS

On the Nifty hourly chart; RSI reacted up from the oversold zone implies it may once again challenge upside resistances placed around 10,140, 10,190 and 10,230. Chart pattern suggests, Nifty successful closing above 10,140 brightens the possibility of a full length movement towards 10,230.

Nifty patterns on multiple time frames show, Nifty critical support of 10,000 is intact, which may provide a springboard to a quick pullback towards 10,190 and 10,230.

The Bank Nifty previous day ended 0.32 percent down at 24,168.20. It ended with a Doji candle. Downside critical support is placed around 24,000 levels while the upside resistances are placed around 24500, 200 daily EMA.

Based on thorough technical study, the research firm has recommended Voltas and BHEL which can give up to 5% return in the near short term:

Voltas | Rating: Buy | Target: Rs 650, stop loss: Rs 600 | Return: 5%

After reacting down from Rs 645 levels, Voltas is trying to find support around 30 daily EMA placed around Rs 617 levels. Ending the session in green after three sessions of falls might be an indication of reversal.

Rebounding from the critical support while the primary uptrend is well intact is an indication of a strong pull back. RSI on daily chart retesting the downward trend line breakout support.

Hence, based on the above mentioned observations, we recommend Voltas as a buy on dips for the short-term upside target of Rs 650.

BHEL | Rating: Buy | Target: Rs 88, stop loss: Rs 79 | Return: 7%

After reacting down from the recent high of Rs 107 levels,  BHEL has again come down to the previous double bottom zone placed around Rs 82 levels. Price continues making lower lows while RSI makes double bottom on the daily chart might be an early indication of a strong pullback.

Based on the above mentioned observations, we recommend BHEL as a strong buy on dips for the short-term upside target of Rs 88.

Disclaimer: The author is Technical Analyst at Stewart & Mackertich Wealth Management Ltd. The views and ideas expressed above may have been suggested to the clients of Stewart & Mackertich Wealth Management Ltd. It is advised that investors/traders should consult with their Certified Experts before taking any investment decision.
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