he overall structure still looks weak and as long as Nifty trades below 10,040 levels we can expect the downside momentum to continue
SELL NIFTY | TARGET: 9,600 | STOP LOSS: 10,040
The NIFTY index earlier breached its major neckline which was placed near 10,040 levels, and also achieved our short term targets of 9,750 levels. The overall structure still looks weak and as long as Nifty trades below 10,040 levels we can expect the downside momentum to continue towards 9,600 levels. The momentum indicator RSI has also started making a lower high and lower low formation. Although at the current level, the risk and reward are not favorable. Hence one should wait for some pullback towards the 9,850-9,900 zone to initiate short positions.
SELL SIEMENS | TARGET: Rs 995 | STOP LOSS: Rs 1,080
The stock is making a lower high and lower low formation on the daily chart and it has breached its short term 21 DMA which is currently placed near 1,075 levels. The momentum oscillator MACD has also provided fresh sell crossover on the daily chart. Based on the above rationale, we may see some selling pressure.
BUY ICICI LOMBARD GENERAL INSURANCE | TARGET: Rs 1,400 | STOP LOSS: Rs 1,290
The stock has provided breakout from its one-month consolidation. It is trading well above its short term and long term moving averages. The momentum indicators and oscillators are very well in buy mode on daily as well weekly scale which hints of positive momentum to continue in the short term.
BUY CUMMINS IND | TARGET: Rs 420 | STOP LOSS: Rs 380
The stock is making a higher top and higher bottom formation on the daily chart. It is on the verge of a breakout from a broader consolidation which is placed at 400 levels. The momentum indicator RSI also making higher tops which hints that the counter is likely to break on the higher side.
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research Analyst at Anand Rathi Shares and Stock Brokers. He may have positions in one or more stocks. Views are his own.