BUY NIFTY | TARGET: 11,400 | STOP LOSS: 11,200
The Nifty index is consolidating from the past couple of sessions and also trading with a positive bias. Although, it has an immediate hurdle of its previous swing high which is placed at 11,373 and if Nifty breaks the same, then, we can expect the positive momentum to continue towards 11,400-11450 levels. 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 20.5 levels which hints of no major downside movement in the short term. Thus, one can utilize any dip as a buying opportunity by keeping a stop loss of 11,200.
BUY MRF | TARGET: Rs 67,000 | STOP LOSS: Rs 62,000
The counter has provided fresh breakout from a downward sloping trend line. The volumes were higher than average which also supported the price action. The stock has also reclaimed its 200-DMA which was placed at 63,000 levels. The overall setup hints that the positive momentum is likely to continue towards its previous swing high of 67,500 levels. The MACD has provided a buy crossover on the daily chart which hints of a further positive momentum in the counter.
The stock has provided a breakout from an inverse head and shoulder pattern on the daily chart. It is trading well above its short term and long-term moving averages. A higher-than-average volume also supported the price action. The momentum indicator and oscillator are in 'buy' mode on the weekly scale which hints at further positive momentum in the counter.
The stock has formed a morning star candlestick pattern on the weekly scale which is considered as a bullish reversal pattern. It is constantly taking the support of its short term 21-DMA which is placed at 194 levels and is likely to act as immediate support. The MACD has provided a buy crossover and RSI has also reversed from its oversold territory on the daily chart which hints of a further positive momentum in the counter.