Pharma sector has been performing very well and Abbott India stock could also participate in the coming day
Nifty needs to close above 11,250 to negate the Bearish Technical setup
Nifty reversed northward journey after witnessing a correction of 460 points from the recent top of 11,341. It, however, found support around its 200 days SMA and surged more than 200 points, to close above 11,100. This sharp recovery could end up being a dead cat bounce, as the trend-line support which was recently broken could act as a resistance at 11,250. Therefore, unless Nifty surpasses 11,250 on closing basis, probability of resuming down trend would remain.
BUY Abbott India (16,401) | Target: Rs 17,290 | Stop-loss: Rs15,800
The stock has broken out from the downward sloping trend line on the daily charts. The price breakout is accompanied by surge in the volumes, which shows strength in the trend. Pharma sector has been performing very well and this stock could also participate in the coming days.
The stock price has broken out from the consolidation and has taken out the crucial resistance of 1,800 with jump in volumes. Indicators and Oscillators have turned bullish on the short term charts and stock is expected to see momentum buying in the coming days.
Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. He doesn't hold the stocks mentioned above.