Nifty index opened negative and fell down sharply towards 9,861. It formed a Bearish Engulfing pattern as it covered all the gains made in the last three trading sessions. It has also broken previous day’s low of 9,910 and closed with the loss of around 60 points. Now it has to cross and hold above 9,928 zones to witness an up move towards 9,980 then 10,020 while on the downside supports are seen at 9,850 then 9,820 levels.
Last Close: Rs 1,764
Stop Loss: Rs 1,730
Target: Rs 1,840
It has been holding above its falling supply trend line. It has also formed a “Morning Doji Star” and a “Rounding Bottom” pattern on the weekly scale which has a bullish implication. Major trend of the stock is positive and recent declines from its life time high is giving the fresh opportunity for the next leg of the rally.
LIC HOUSING FINANCE
Last Close: Rs 676
Stop Loss: Rs 660
Target: Rs 710
NBFCs are on a roll and LIC housing Finance seems to be an emerging star after a prolonged corrective decline. It witnessed a strong bottom near Rs 635 and negated its negative formation of lower top-lower bottom on the weekly chart. It formed a reversal “Dragon Fly Doji” followed by a “Bullish Belt Hold” on the weekly chart. It has also taken support at its rising trend line by connecting recent major swing lows of Rs 467, Rs 563 and Rs 635 marks.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.