By Aditya Agarwala
Nifty50 reversed in trade in the weekly expiry session to shut shop in the green led by buying seen in financial stocks. The index took support at the key short-term moving average placed at 15,630, and formed a small bullish candlestick. However, it is approaching the intermediate hurdle of 15,780, being the 127 per cent Fibonacci extension level that has been acting as stiff resistance for the past few trading sessions. A failure to break out of this hurdle could resume profit booking, dragging the index to levels of 15,570-15,470. On the flipside, sustained trade beyond 15,780 will extend the uptrend, taking Nifty50 higher to levels of 15,860-15,950.
Nifty50 reversed in trade in the weekly expiry session to shut shop in the green led by buying seen in financial stocks. The index took support at the key short-term moving average placed at 15,630, and formed a small bullish candlestick. However, it is approaching the intermediate hurdle of 15,780, being the 127 per cent Fibonacci extension level that has been acting as stiff resistance for the past few trading sessions. A failure to break out of this hurdle could resume profit booking, dragging the index to levels of 15,570-15,470. On the flipside, sustained trade beyond 15,780 will extend the uptrend, taking Nifty50 higher to levels of 15,860-15,950.
Stock recommendations
- Buy @ CMP of Rs 5,538 for a target of Rs 6,000 with a stop loss at Rs 5,280
The stock has resumed its upward journey after breaking out of a narrow consolidation pattern on good volumes. It is making higher highs and higher lows, confirming bullishness. RSI has also turned upwards from the 58 level, confirming dominant strength in the stock.
- Buy CreditAccess Grameen @ CMP of Rs 718 for a target of Rs 800 with a stop loss at Rs 677
The stock has resumed its uptrend after taking support at the 61.8 per cent Fibonacci retracement level placed at Rs 678. Volumes have been good in the bullish candlestick, confirming bullishness. Technical indicators are also in bull territory, confirming strength in the stock.
(Aditya Agarwala is Senior Technical Analyst at YES Securities)
