The broader structure still looks weak and If Nifty unable to surpass the psychological hurdle which is placed at 10000 levels, we can expect some profit booking
SELL NIFTY | TARGET: 9,600 | STOP LOSS: 10,000
The Nifty index continued its upmove and also filled a gap that was placed at 9,700. Now, since we have already seen a rally in the past couple of sessions, one should refrain from creating any aggressive long position at higher levels. The broader structure still looks weak and if Nifty is unable to surpass the psychological hurdle of 10,000 levels, we can expect some profit booking. So, we advise aggressive traders to initiate a short position with a strict stop loss of 10,000.
BUY BHARTI AIRTEL | TARGET: Rs 600 | STOP LOSS: Rs 542
The stock is making a higher top and higher bottom pattern on the daily chart. Although, it witnessed some correction post making all-time highs, the stock has taken the support of its short term 21-DMA which is placed at 550. On the daily chart, the stock has formed a Doji candlestick pattern which hints of a trend reversal. Based on the above rationale, we believe the momentum is likely to continue towards Rs 600 which is the immediate target.
BUY CADILA HEALTHCARE |TARGET: Rs 380 | STOP LOSS: Rs 335
The stock has provided breakout from its one-month consolidation and made a bullish candle on the daily chart. It is also trading well above its short term as well as the long term moving averages. The momentum oscillator MACD has provided fresh buy crossover on the daily chart which hints of some positive momentum that should continue.
BUY CASTROL IND | TARGET: Rs 125 | STOP LOSS: Rs 113
The stock is showing a reversal in the trend and it has also reclaimed its short term 21-DMA which is placed at 117. The volume activity also supported the price action. The momentum indicator and oscillators are very well in the buy mode.
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.