The major trend will get confirmed only after Nifty giving a decisive breakout from the broader range of 11,800 – 11,050. But if we just have to guess on one possible direction, looking at current chart structure, we would remain hopeful as long as ‘Multi-Month Trend Line’ support of 11,050 – 10,900 remain unbroken on a sustainable basis. Below this, no brainer, we may see sharp declines and on the other hand, a move beyond the higher end would resume the broader degree up trend.
Going by our recent articles, traders need to remain a bit light on positions and one should rather look to accumulate marquee propositions in a staggered manner. We would like to highlight one notable observation, the ‘midcap index’, which has not participated in last one and half a year, seems to be in a final stage of its price-wise as well time-wise correction. So, in case of favourable outcome, we expect midcap stocks to attract traders’ attention.
View – Bullish
Last Close – Rs 1993.65
This marquee name has been a consistent wealth creator since almost last three decades in Indian markets.
Recently, we witnessed a small pause to this strong multi-year run up. Prices have been oscillating within the boundaries of a ‘Rising Wedge’ pattern since last few months. In the last three-four days, the stock has been attracting strong buying around the lower end of the wedge and on Friday, we saw massive bump up to confirm a small breakout on hourly chart. Since we are heading into a bit of volatile week, it makes sense to be with such steady rank outperformer. Thus, we recommend buying at current levels for a target of Rs 2,040 – 2,050 and the stop loss should be fixed at Rs 1,960.
NSE Code – ICICI Lombard
View – Bullish
Last Close – Rs 1,120
Justification – In spite of the recent turmoil in the broader markets, this stock has been an outperformer by continuously moving in a ‘Higher Top Higher Bottom’ price formation. On the daily chart after a consolidation and witnessing resistance around Rs 1,110 for three times in a month, the stock price has finally broken above the barrier to confirm the continuation of uptrend. In addition, momentum oscillator i.e. RSI after a minor dip has again turned up, confirming a bullish crossover with its smoothened moving average. Looking at all the above evidence, we sense a strong northward move in the near term. We recommend buying at current levels for a target of Rs 1,218 and the stop loss should be fixed at Rs 1,064.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.