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Pullback on the higher side likely if Nifty holds 10k: Nilesh Jain

HDFC's stock has formed a bullish engulfing candlestick pattern on the daily chart
BUY NIFTY | TARGET: 10,250 | STOP LOSS: 9,900

The NIFTY index rebounded sharply from the lower levels and formed a morning star-like candlestick pattern on the daily chart. It also reclaimed 100-DEMA, placed at 10,030 levels, which was earlier acting as a major resistance zone. Now, as long as Nifty trades above 10,000 levels, the overall structure hints of a continuation of a current pullback towards its previous swing high. The momentum oscillator MACD has provided buy crossover on the hourly chart.

BUY HDFC LTD | TARGET: Rs 1,800 | STOPLOSS: Rs 1,950

The stock has provided breakout from a broader consolidation and also formed a bullish engulfing candlestick pattern on the daily chart. It is also trading above its short-term moving averages. The momentum indicator RSI is also making higher tops which hints at the continuation of the current rally.

BUY BANDHANBANK | TARGET: Rs 290 | STOP LOSS: Rs 260

The stock earlier provided breakout from its symmetrical triangle formation and currently, it is hovering around the same levels. 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 continuing in the short term.

SELL ASIANPAINTS | TARGET: Rs 1,525 | STOPLOSS: Rs 1,630

The stock is making a lower high and lower low formation on the daily chart. It has also breached its short term 21 DMA which is currently placed near 1,630 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.

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.



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