Bulls returned with a bang on the Dalal Street on Tuesday following a dismal performance in the March expiry. Further, the Nifty50 index ended trade with gains in excess of 300 points, closing beyond the key short-term moving averages of 20-DMA & 50-DMA. However, the bulls need to push the index beyond the next crucial resistance zone of 14,870-14,900 to trigger an extended short covering rally to levels of 14,960-15,050.
On the flipside, failure to push the index beyond 14,900 may lead to profit booking, dragging the index lower to levels of 14,700-14,630. Technical Indicator RSI has turned upwards after taking support at the lower end of the bull territory suggesting that the uptrend is still intact and a move above 14,900 could take the index all the way up to its recent highs of 15,250-15,300.
Equity recommendation
LTI: BUY
CMP: Rs 4,160
Target: Rs 4,450
Stop loss: Rs 4,010
The stock has resumed its uptrend after breaking out of a falling wedge pattern on higher volumes. Further, on the weekly chart, it has constantly taken support at the short-term upward sloping moving average, i.e. 20-WMA, confirming strength in the stock. Technical indicator RSI is also confirming that the stock is trading in the bullish territory.
BRITANNIA: BUY
CMP: Rs 3,616
Target: Rs 3,800
Stop loss: Rs 3,500
The stock has resumed an uptrend after breaking out of a consolidation phase. Further, it is on the verge of a breakout from a trendline resistance which also happens to be the 200-DMA. Moreover, the 20-DMA has made a bullish crossover with the 50-DMA, confirming strong uptrend. Technical indicator positive DI has crossed over the negative DI, suggesting higher levels.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
