Web Exclusive
Nifty close below 14,416 would be bearish for short-term: Vinay Rajani

Nifty outlook

 
On May 3, 2021, Nifty bounced back sharply from the day’s low and formed bullish candle on the daily chart. On the same day, Nifty hit a low of 14,416, which happens to be the 61.8 per cent retracement of the entire pullback seen from 14,151 (Low of April 22, 2021) to 15,044 (High of April 29, 2021). Any close below 14,416 would violate the crucial support of the golden ratio and in that case, we can expect Nifty to enter in to a bearish territory. Below 14,416, Nifty could slide towards next support of 14,150. In short term, we can expect stock-specific bullish moves in mid-cap and small-cap segment and those should be traded with appropriate stoploss.

Buy Natco Pharma (Rs 933): | Target: Rs 1,020 | Stop-loss: Rs 850

The stock price has broken out from bullish “Pennant” pattern on the daily charts. Rising volumes during the breakout has validated the upside breakout. It has been trading above important moving average parameters, indicating uptrend on all time frames. Pharma sector has been one of the best performing sectors and is still holding its strength. The stock price has broken out from the consolidation which held for last four weeks. Indicators and oscillators like RSI, MACD and DMI have turned bullish
on short term charts

Buy HPCL (Rs 242): | Target: Rs 262 | Stop-loss: Rs 228

In the last seven weeks, the stock price has formed strong base around 228 odd levels by registering multiple bottoms. On May 4, 2021, the stock rose more than 2.5 per cent with good volumes, and surpassed the resistance of 241, which has resulted in to a breakout from the narrow consolidation, which held for seven weeks. Indicators and oscillators have turned bullish on the daily charts.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel