Benchmark Index Nifty 50 ended a volatile session of trade marginally higher with gains of 46 points. Further, the psychological level of 18,000 continues to act as a crucial pivot, keeping the bears active. A sustained failure to trade beyond the hurdle of 18,000-18,050 may lead to volatile sessions dragging the Index lower to levels of 17,800-17,700. On the flip side, if bulls push the Index beyond 18,000-18,050, the up move will continue taking the Index higher to levels of 18,150-18,200. Moreover, RSI has also entered a sideways consolidation phase between 50-70.
Equity recommendations
| BUY at CMP of Rs 1,420
Target: Rs 1,520
Stop Loss: Rs 1,360
The stock has broken out of a consolidation pattern on good volumes triggering a resumption of the uptrend. Technical indicator RSI has turned upwards after forming a positive reversal suggesting strength in the stock.
| BUY at CMP of Rs 7,690
Target: Rs 8,100
Stop Loss: Rs 7,400
The stock is on the verge of a breakout of a sideways consolidation suggesting bullishness. Moreover, volumes have been encouraging. Further, RSI has turned upwards above the 60 levels after formation of a positive reversal pattern suggesting strength.
(Aditya Agarwala, is Senior Technical Analyst, YES Securities. The views are his own.)
