INSUBCONTINENT EXCLUSIVE:
By Kapil ShahTechnical Analyst-Emkay Global Financial ServicesNifty is currently facing resistance at 11,185 levels and this is likely to be
broken on the upside in the current week, according to technical analysts
Stocks such as Hindustan Unilever, Kotak Bank, HDFC Asset Management, Info Edge, Adani Port, L-T, Dr Reddy’s, Dabur and Berger Paints have
bullish chart structure and poised for further upmove.
Where are we: As index had formed lower high and lower low on weekly time frame and
breached rising channel, it indicates we are in grip of bears for short term perspective
In later part of previous week, Index had staged smart recovery but it can be considered as relief rally
Index had cut in its size by 10 per cent from its peak
With this fall, Index had come below 200-DMA
70 per cent of Nifty 50 stocks are below 200-DMA but remaining 30 per cent stocks which are above longterm moving average are the ones which
carry higher weights.
What is in store: With immediate rise Index had reached upto 11,150 level, it is an important level because in the
past, it had an important turning point at 61.8 per cent retracement level of immediate fall and 200-DMA.Collectively, it forms stiff
resistance at 11,150 level
So in the short term, the index can remain under pressure as far as it continues below 11,150 level
Move above 11,150 can lead to further improvement upto 11,350 level
On down side strong resistance remain at 10,600.
What could traders do: Looking at pattern of the fall in recent few years, Nifty had fallen
in the range of 10-15 per cent and it had given good entry point for investors
So with decent correction, investors can start accumulation with leading large- and mid-cap companies
For investment perspective Adani Port, L-T, Dr Reddy’s, Titan, UPL are good stocks.
