The Nifty50 index continues to consolidate post attaining new life highs, as expected. Profit-booking at new life highs led to technical pullback in prices post sharp upside. Occurrence of “Bullish Hammer” on weekly scale suggests the lager uptrend resumed and the same remains intact for the rally that commenced from its February lows of 10,585. Sustenance of Daily RSI above 50 levels along with breach above “Bearish Divergence” resistance line supports the overall setup for the continuation of ongoing upside momentum. Daily close above its 20 EMA along with positive crossover of 5 & 20 DEMA indicates resumption of upside momentum for a larger move on the upside aiming 12,060 & 12,220 levels in coming sessions. Short-term traders should continue holding longs for 12,060 to be obtained in coming sessions with trailing stop below 11,550 (closing basis) previous consolidation support zone.
Stock: HERO MOTOCORP
CMP: Rs 1,671.05
The stock is bouncing from its recent 52-week-lows around Rs 2,475 levels along with breach above its down trending resistance line prevalent since February. Highest call bearing at Rs 2,700 levels along with 100 DEMA placed at Rs 2,710 levels indicates that breach above the levels could trigger short covering momentum, targeting its 200 DEMA placed at Rs 2,870 levels. “Bullish Divergence” on weekly scale at 52-week-lows along with follow through momentum supports the overall view for continuation of upside momentum in coming weeks. The stock can be bought with stop placed below Rs 2,650 levels price confluence support for Rs 2,875 to be obtained in coming weeks.
Stock: HINDUSTAN UNILEVER
CMP: Rs 1,772
The stock bounced post “Double Bottom” formation around Rs 1,665 levels on daily scale along with “Morning Star” formation on weekly scale. Positive crossover of 20 & 100 DEMA in today’s session in conjunction with highest call bearing at Rs 1,800 strike indicate the stock is gathering momentum for breach above Rs 1,800 levels in coming sessions. The stock is expected to retest its life highs around Rs 1,870 levels. Hence, traders can long the stock with stop placed below Rs 1,725.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.