The bulls managed to keep the benchmark indices in the positive territory amidst volatility. However, the Nifty50 index continued to face tough resistance at the 20-DMA placed at 14,900 levels. Further, a failure to take out this resistance of 14,900 may resume the corrective wave, dragging the index lower to levels of 14,730-14,630.
However, on the flipside, if the index sustains beyond 20-DMA, i.e., 14,900 level, fresh uptrend may be triggered, taking the index higher to levels of 15,000-15,100.
Overall, the index is going through an irregular flat correction with a major hurdle at 15,270-15,300. A close above this hurdle will resume the uptrend.
Equity recommendation
Titan: BUY
CMP: Rs 1,495
Target: Rs 1,580
Stop loss: Rs 1,450
The stock has resumed its uptrend after breaking out of a consolidation pattern. Further, volumes have picked up in the recent bull candles and also in the breakout candle, confirming the bullishness. Technical indicator RSI is also confirming that the stock is trading in the bullish territory.
Shree Cement: BUY
CMP: Rs 28,312
Target: Rs 29,600
Stop loss: Rs 27,600
The stock has resumed an uptrend after forming a double bottom at a trendline support. Further, massive volumes were witnessed in the last bull candle, confirming strong uptrend. Technical indicator +DI has crossed the -DI, suggesting higher levels.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
