The Indian benchmark index Nifty50 ended a volatile session of trade just about in the green with a mere gain of 10 points as 15,300 acted as a hurdle throughout the session. Significant open interest build up is also seen in the Call side ahead of the May expiry session on Thursday. Further, on the downside, immediate supports are placed between 15,150 and 15,100 levels and failure to hold on to these key support levels may trigger profit booking, dragging the index lower to levels of 15,000-14,950.
However, if Nifty manages to scale levels of 15,300, fresh buying would push the index to levels of 15,400-15,450. Moreover, the RSI on shorter time frame charts has started developing negative divergences. Therefore, traders should closely watch out for support levels of 15,150-15,100 in the coming trading sessions
Equity recommendations
Titan: BUY
CMP: Rs 1,570
Target: Rs 1,750
Stop loss: Rs 1,480
The stock has turned upwards from the lower end of the consolidation flag pattern and is now approaching the upper end placed at Rs 1,620. A successful breakout on good volumes will extend the uptrend levels of Rs 1,750. Volumes are also encouraging, suggesting that the stock should break out of the consolidation pattern soon. RSI, too, has turned upwards after forming a positive reversal, which is a sign of strength.
UBL: BUY
CMP: Rs 1,297
Target: Rs 1,440
Stop loss: Rs 1,220
The stock is on the verge of a breakout from a Cup and Handle pattern neckline placed at Rs 1,320. A successful breakout will resume the uptrend, taking the stock higher to levels of Rs 1,440. RSI is also suggesting bullishness.
Amit Trivedi is CMT, Technical Analyst – Institutional Equities, YES Securities. Views are his own.
