Aggressive traders can initiate a long position in Nifty with a strict stop loss of 10,800
BUY NIFTY | TARGET: 11,050 | STOP LOSS: 10,800
The Nifty index witnessed profit booking at higher levels and reached near its major support of 200-DMA, placed at 10,850. The momentum indicators and oscillators on the weekly scales are still in buy mode which hints of some buying at lower levels. On the derivative front, some addition was seen at 10,800 put strike which holds the maximum open interest and is likely to act as immediate support. Thus, aggressive traders can initiate a long position with a strict stop loss of 10,800.
BUY TATA CONSUMER | TARGET: Rs 460 | STOP LOSS: Rs 420
The stock made a fresh all-time high and has provided breakout from a cup pattern on the daily chart. It is trading well above its short term and long term moving averages. It is also making a higher top and a higher bottom pattern on the daily chart. The momentum indicator and oscillator are on buy mode on the daily chart which hints of further positive momentum in the counter.
The stock provided breakout from a rectangle formation and volume activity is also supporting the price action from the past two days. It is trading well above its long and short term moving averages. The MACD has provided a buy crossover on the daily chart which hints of a further positive momentum in the counter.
SELL ESCORTS | TARGET: Rs 1,040 | STOP LOSS: Rs 1,150
The stock has provided breakdown from a head and shoulder top formation. The conservative targets of the pattern is coming around 1050. It also breached its short term 21-DMA which is also placed at 1125 levels. The momentum oscillator MACD has provided sell crossover on the daily chart. Based on the aforementioned rationale, we can expect some more weakness in the counter.
Disclaimer: Nilesh Jain is Technical and Derivatives Research analyst at Anand Rathi
Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.