The RSI indicates further positive momentum in Deepak Nitrite's counter
BUY NIFTY | TARGET: 11,400 | STOP LOSS: 11,220
The Nifty index continued its up move and also reached our short term targets of 11,400. The overall structure still looks positive and we can expect Nifty to retest the levels of 11,400, going forward. The momentum indicators and oscillators on the weekly scales are still in 'buy' mode which hints at some buying at lower levels. The volatility index is currently near 21 levels which is giving comfort to the bulls. Thus, one can remain on the long side by keeping a stop loss of 11,220.
The counter had earlier provided breakout from a saucer pattern on the daily chart and witnessed some throwback from higher levels. Now it has retested its breakout levels and again started rising. The overall setup signals that the positive momentum is likely to continue towards 690 levels. The RSI has also reversed from the oversold territory on the daily chart which hints at a further positive momentum in the counter.
BUY BHEL | TARGET: Rs 42 | STOP LOSS: Rs 36.5
The stock has provided breakout from a falling wedge pattern on the daily chart and also made a flag pattern on the weekly scale. The overall setup volume has also picked up from the past couple of sessions. It is also trading above its 200-DMA which is placed at 36.5 levels on the daily chart and is also likely to act as immediate support. The momentum indicator and oscillator are on buy mode on the daily as well as a weekly scale which hints at further positive momentum in the counter.
BUY ONGC | TARGET: Rs 86 | STOP LOSS: Rs 79.5
The stock has provided a breakout from a falling trend line on the daily chart. It is constantly taking the support of its short term 21-DMA which is placed at 79.5 levels and likely to act as immediate support. The MACD has provided a buy crossover and RSI has also reversed from its oversold territory on the weekly chart which hints of a further positive momentum in the counter.