Nifty index continued its losing streak for third consecutive session and corrected towards 9,120. It recovered well from lower levels and formed a Doji candle on the daily chart as closed near to its opening levels. Occurrence of Doji after the recent profit booking indicates that follow up selling is missing and decline is being bought in the market. Now it has to cross and hold above 9,165 to witness an up move towards 9,218 and 9,250 while on the downside supports are seen at 9,090 and 9,050 levels. Index is trading below its support trend line by connecting lows of 8,712, 8,903 and 9,024 but almost completed its 61.80% retracement of the recent upswing from 9,019 to 9,274.
IndiaBulls Housing Finance
Last Close: Rs 977
Stop Loss: Rs 944
Target: Rs 1,020
It has taken support at rising trend line and negated the formation of lower highs of last six trading sessions. It also completed its 50% retracement of the upswing from 835 to 1,107.
Last Close: Rs 1,391
Stop Loss: Rs 1,365
Target: Rs 1,440
It has negated its lower highs – lower lows of last five trading sessions and surpassed its falling supply trend line on the daily chart. Major trend of the stock is positive and recent decline is giving a fresh opportunity to buy the stock. Thus, recommending to buy with the trading stop loss of 1,365 for a potential upside target of 1,440.
Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.