Despite bearish technical set up on the charts, Nifty managed to recover from the lower levels on Tuesday
Nifty not in a mood of going down in Immediate short term
Nifty made a low at 9,043 but staged a nice pullback on the back of short covering. Despite bearish technical set up on the charts, Nifty managed to recover from the lower levels. It seems that Market is waiting for some event to come and it is not in the mood to swing down in the immediate short term. There are good chances that Nifty might extend the pullback towards 9,440-9,500 odd levels. However, it looking at the overall setup, strategy should be to sell on rallies.
Buy Bharti Airtel (560) | Target: Rs 590 | Stop-loss: Rs 540
The stock price has broken out from the consolidation which held for last 6 sessions. This breakout can be termed as a “Flag” breakout on the daily charts, which indicates the continuation of primary uptrend. The stock is on the verge of registering new all time high and volumes have been picking up for the counter.
Buy Deepak Fertilisers (105.45) | Target: Rs 115| Stop-loss: Rs 100
The stock price has surpassed the crucial resistance of its 200 DMA. Since March 2020, stock has been forming higher tops and higher bottoms. Fertilizer and Chemical sector has been outperforming in the recent past. Indicators and Oscillators have been showing strength in the counter.
Disclaimer: Vinay Rajani is technical analyst at HDFC Securities and may hold positions in one or all of the above mentioned stocks. Views are his own.