The recent ‘Engulfing Bearish’ formation post the 4 days up move complimented the unwinding state & saw a decline towards 10550. On the options front 10500 PE remains heavily built up & remains a strong support followed by 10600.The options pain remains at 10600 for the current series & the spinning top formation in yesterday’s session augurs well for a consolidative state hence expect the index to retain the range of 10730-10550 for the coming days.
Stock: BAJAJ FINANCE
CMP: Rs 2118
Bajaj Finance has been in a secular uptrend & the occurrence of a ‘Flag Formation’ on the daily scale augurs well for the ongoing trend to continue. Breakout above 2150 could attract momentum & hence long positions could be initiated with a stop below 2055 for a short term target up to 2265.
Stock: MAX FINANCIAL
CMP: Rs 483
Double bottom formation on the weekly scale followed by a corrective move getting terminated with the occurrence of a ‘Bullish Harami’ on the daily scale. The corresponding RSI value has just move above 50 indicating likely momentum to be established soon. Trading longs could also be initiated with a stop below 470 for an immediate move towards 524 where its 200 DEMA is placed.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.