Indian benchmark index Nifty50 ended a volatile expiry session of trade marginally higher, forming a Doji candlestick pattern. Further, it gained 3 per cent in the May series as bulls made an attempt to take the index to new all-time high, crossing its previous peak of 15,430.
However, bears will also try to protect the key resistance zone of 15,400-15,430 levels with it being the all-time high and upper end of a rising wedge pattern. Therefore, traders should watch out for a trade beyond this resistance zone for a move towards 15,500. Failure to sustain beyond 15,400-15,430 may trigger profit booking, dragging the index lower to levels of 15,270-15,170.
Equity recommendation
Siemens: BUY
CMP: Rs 2,043
Target: Rs 2,200
Stop loss: Rs 1,960
The stock has turned upwards after breaking out of a consolidation pattern and is now approaching levels of Rs 2,200. Further, the RSI has turned upwards after taking support at the 60-level, which happens to be the upper end of the bear zone, confirming the bullishness. Volumes have also picked up in the breakout candle, suggesting higher levels.
Products: BUY
CMP: Rs 830
Target: Rs 900
Stop loss: Rs 800
The stock has resumed its uptrend after breaking out of a bullish Flag pattern. Further, the breakout was backed by good volumes, confirming the bullishness dominant in the stock. RSI is also favouring the bulls currently.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
