Monday, 26 March 2018

Nifty ends previous week around prolonged upward trending channel support; Buy Tata Steel for 8% return in near term

“Nifty getting stuck in the price range of 9860 to 10,050 is quite likely.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

 http://www.bigprofitbuzz.com/free-trial/The Nifty previous Friday ended 1.15 percent down at 9998.05. Gap-down opening amid overnight negative global cues took the Benchmark Index down towards long-term upward trending channel support placed around 10,000 levels, day’s low was 9952.

However, recovery from day’s low led the Index towards ending the session with a bullish Doji candle. Hence, we certainly do not recommend short selling at this juncture keeping in mind the Nifty on daily chart continues making lower lows while RSI made double bottom and approaching towards oversold zone. Downside pivotal supports are placed around 9950, 9890, and 9860.

On the Nifty hourly chart; it already has reached extremely oversold zone while RSI shows huge positive divergence. Hence, we do not rule out the possibility of intraday buying on dips around 9890 and 9860. STOCK FREE TRIALS TIPS

Nifty patterns on multiple time frames show, bearish marubozu candle formation on the weekly chart may restrict the pullback around 10,020 and 10,050 even if intraday pullback comes in play on dips around 9890 and 9860 levels. Nifty getting stuck in the price range of 9860 to 10,050 is quite likely.

The Bank Nifty previous Friday ended 1.95 percent down at 23,670.40. It is approaching towards long-term pivotal support placed around 23,400.

Based on thorough technical study, the research firm has recommended Tata Steel which can give up to 8% return in the near short term:

Tata Steel | Rating: Buy | Target: Rs 600, stop loss: Rs 535 | Return: 8%

After its recent correction from Rs 750 levels the stock has again come down to the mid-term upward trending channel support placed around Rs 555 levels. 2014 established top is placed around Rs 550 levels.

On daily chart, the stock is approaching towards oversold zone. However, Rs 600 may now act as the immediate pivotal resistance.

Based on the above mentioned observations, the house has recommended Tata Steel as a strong buy on dips for the near-term upside target of Rs 600.

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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