Bulls were back in action after a halt in the previous trading session as benchmark index Nifty50 shut shop in the green with gains of 158 points. For the week, the index has already gained a significant 3.17 per cent.
Further, the Nifty managed to close beyond the intermediate resistance of 17,200 and going ahead, a sustained trade beyond this resistance can extend the up move to levels of 17,300-17,350. However, failure to sustain beyond 17,200 in the coming session can trigger profit booking, dragging the index lower to levels of 17,120-17,060 levels.
Moreover, the technical indicator RSI remains in an overbought territory, indicating that traders should remain cautious as sudden bouts of profit booking cannot be ruled out.
Equity recommendations
Nestle: BUY
CMP: Rs 20240
Target: Rs 20900
Stop loss: Rs 19900
The stock has resumed an uptrend after taking support at the trendline in the recent profit booking. Further, it is constantly making higher highs and higher lows and all the bull candles are on extremely good volumes, confirming bullishness. Technical indicator RSI has turned upwards after taking support at the 60-level, suggesting strength in the stock.
Eicher Motors: BUY
CMP: Rs 2733
Target: Rs 2900
Stop loss: Rs 2650
The stock is on the verge of a breakout from an Ascending triangle pattern resistance line placed at Rs 2770 levels. A successful breakout on volumes will take the stock higher to levels of Rs 2900. Strong volume build up and technical indicator RSI crossing the 60-level are suggesting a successful breakout is on the cards going forward.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own)
