Indian benchmark index Nifty-50 ended trade in the green with a gain of 80 points, breaking out of the 7-day narrow consolidation phase. Further, a sustained trade beyond 16,350 will extend the uptrend, taking the index higher to levels of 16,500-16,700 in the near term. However, failure to immediately breakout of this hurdle can trigger profit booking, dragging the index lower to levels of 16,250-16,160, which is the lower end of the trading range.
Moreover, technical indicator RSI has turned upwards from the lower end of the bull territory, i.e., 40-level and closed beyond the 60-level, confirming strength in the index and a possible continuation of the uptrend post the breakout from the narrow consolidation phase in trade today.
Equity recommendation
: BUY
- CMP: Rs 656
- Target: Rs 690
- Stop loss: Rs 638
The stock has resumed the uptrend after breaking out of a narrow consolidation pattern on good volumes. Technical indicator RSI has turned upwards after forming a positive divergence, confirming the bullishness.
Info Edge (India): BUY
- CMP: Rs 5,426
- Target: Rs 5,850
- Stop loss: Rs 5,200
The stock is on the verge of a breakout from a trendline resistance formed joining recent highs. Further, a sustained trade beyond Rs 5,600 will take the stock to its previous high of Rs 5,850. RSI is also suggesting bullishness going forward.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. View are his own.)
