Benchmark Index Nifty-50 ended in green for two trading sessions back-to-back, led by a short covering in the auto, IT and financial sectors. Further, Nifty index closed beyond the key hurdle of 17,800 suggesting intermediate bullishness.
Going ahead, a sustained trade above this resistance of 17,800 will extend the up move to 17,950-18,080 levels. However, a failure to sustain beyond this resistance in the coming trading sessions may trigger profit booking, dragging the index lower to 17,650-17,600 level. Moreover, technical indicator RSI has also come off its over territory and taken support at the 60 level confirming more room for upside in the coming sessions.
Equity recommendations
Craftsman Automation | BUY at CMP of Rs 2,178
Target: Rs 2,300
Stop Loss: Rs 2100
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 taking support at the 60 level suggesting strength in the stock.
| BUY at CMP of Rs 2,922
Target: Rs 3,150
Stop Loss: Rs 2,800
The stock has resumed its uptrend after breaking out of a channel pattern resistance on good volumes. Further, RSI has also turned upwards above the 60 levels after formation of a positive reversal pattern suggesting strength.
(The author, Aditya Agarwala, is Senior Technical Analyst, YES Securities. The views are his own.)
