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Overall fall in volatility giving comfort to the bulls: Nilesh Jain

Ambuja Cements' stock has provided breakout from one-month consolidation zone
BUY NIFTY | TARGET: 10,950 | STOP LOSS: 10,700

The Nifty index continued its upmove in line with our expectations and is also holding above 10,600 levels which is a major support zone. The momentum indicators and oscillators are very well in the buy mode on a weekly scale which hints that bulls are tightening the grip and the current pullback is likely to extend further. The volatility index IndiaVIX, fell by 5 per cent and ended at a 4-month low of 24.75 levels. The overall fall in the volatility is giving comfort to the bulls. Thus, aggressive traders can initiate a long position with the strict stop loss of 10,700 and defensive traders should refrain from creating any aggressive bets in the index from here on and adopt a stock-specific approach.

BUY AMBUJACEM | TARGET: Rs 215 | STOP LOSS: Rs 195

The stock has provided breakout from one-month consolidation zone with higher-than-average volumes. It is also trading well above its short-term moving averages. The momentum oscillator MACD has also provided fresh buy crossover on the daily chart which hints of positive momentum to continue in the short term.

BUY BAJAJ AUTO | TARGET: Rs 3,050 | STOP LOSS: Rs 2,910

The stock is making a higher top and higher bottom pattern on the daily chart. It is also trading well above its short-term and long-term moving averages. The momentum indicator and oscillator are well in the buy mode on the weekly scale.

BUY AUROPHARMA | TARGET: Rs 855 | STOP LOSS: Rs 790

The stock formed a big bullish candle on the daily chart and also provided breakout from a flag pattern from the levels of 790 levels. It is also taking the support of its 21-DMA which is also placed near 790 levels. The momentum indicator RSI is also moving higher which hints that current rally is likely to continue further. 

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.



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