Benchmark index Nifty50 ended trade higher for the second day in a row, following a positive start to the session beyond the crucial resistance neckline of an Ascending Triangle pattern placed between 14,870-14,880. However, late profit booking in financials pushed the index back to sub-14,880 levels at close, which can be termed as a retest of the neckline of Ascending Triangle.
In the coming sessions bulls need to make sure they take the Nifty50 index beyond the 14,880-14,900-mark for an extension of the up move to levels of 15,100-15,150. However, failure to sustain above 14,900 may trigger profit booking, taking the index back to levels of 14,680-14,450. Technical indicator RSI has turned upwards beyond the 50-level, suggesting bullishness building up in the market.
Equity recommendation
1. HDFC AMC: BUY
CMP: Rs 3,005
Target: Rs 3,180
Stop loss: Rs 2,880
The stock has broken out of a consolidation pattern, resuming the uptrend. Further, it is trading above its short-term crucial moving averages, confirming the bullishness. Moreover, the breakout was on higher volumes, confirming the strength in the up move. Technical indicator RSI is also confirming that the stock is trading in bullish territory.
2. Titan: BUY
CMP: Rs 1,571
Target: Rs 1,700
Stop loss: Rs 1,510
The stock is on the verge of a breakout from a trendline resistance formed joining recent highs, suggesting bullishness building up currently. A successful breakout on higher volumes beyond Rs 1,600 will take the stock to new all-time highs. RSI setup, too, is favouring the bulls at the moment.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
