Indian benchmark index Nifty50 ended the session flat with a minor gain of 22 points amidst a volatile day of trading. Further, the Nifty index has entered a narrow sideways consolidation phase following a sharp up move in the previous week after breaking out of the hurdle at 16,000.
Immediate resistance on the upside now is at 16,350 levels and support is at 16,150. At the moment, Nifty is oscillating within this range. Next trending move will be witnessed on a breakout from this range in the direction of the breakout. Moreover, technical indicator RSI has been forming a negative divergence on a shorter time frame chart suggesting that the uptrend is losing steam and may pause for a bit before it resumes the uptrend for levels of 16,450-16,500.
Equity recommendation
: BUY
- CMP: Rs 1,694
- Target: Rs 1,800
- Stop loss: Rs 1,630
The stock has resumed an uptrend after breaking out of the neckline of a Cup & Handle pattern on good volumes. Technical indicator RSI turning upwards from the 60-level suggests extended upside in the stock in the coming sessions.
HDFC: BUY
- CMP: Rs 2,671
- Target: Rs 2,780
- Stop loss: Rs 2,610
The stock has turned upwards after breaking out of a narrow consolidation phase on good volumes. Further, technical indicator RSI has entered the bull territory after taking support at the upper end of the bear territory, confirming strong uptrend dominant at the moment.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
