Heading into the December series, bulls seem to have an upper hand as the index has turned upwards from oversold levels and a sustained trade beyond 17,600 will take the index higher to 17,700-17,800 level. However, a failure to break away from the immediate hurdle of 17,600 may extend the choppy sessions, dragging the index lower to 17,350-17,200 level. Technical indicator RSI has also turned upward after forming a positive divergence suggesting a short covering should play out in the coming sessions.
Equity recommendation
Zee Entertainment | BUY @ CMP of Rs 340
Target Price: Rs 375
Stop Loss: Rs 315
The stock has broken out from a consolidation range triggering resumption of uptrend. Further, the RSI indicator has also turned higher from the 40-level i.e. lower end of the bull zone, confirming strength in the stock
Affle Ltd | Buy @CMP of Rs 1,197
Target Price: Rs 1,300
Stop Loss: Rs 1,140
The stock has broken out of the neckline of a triangle pattern on good volumes suggesting bullishness. Further, RSI has also moved above the 60 – level confirming strong upside momentum.
(The author, Aditya Agarwala, is Senior Technical Analyst, Yes Securities. The views are his own)
