Nifty50 ended Tuesday’s session lower amid profit booking in late trade as bulls failed yet again to take the index beyond the key resistance and the upper end of the trading range placed at 15,900-15,920 levels. Further, the index formed a Gravestone Doji candlestick pattern, an indication of a pause and weakness. Sustained trade below 15,800, which is the low of the Doji candlestick , would extend the profit booking, dragging the Nifty50 index to 15,760-15,740 levels. On the flipside, a trade back above 15,840 would take the index to 15,900-15,920 levels, which have been acting as a stiff hurdle at the moment. On the shorter timeframe, technical indicator RSI has also turned south from overbought territory, suggesting an intermediate pause in the uptrend.
Equity recommendations
- Buy MOTILALOFS @ CMP of Rs 876 for a target of Rs 925 with a stop loss at Rs 850
The stock has resumed an uptrend after breaking out of a bullish flag pattern on good volumes. Further, a bullish crossover between key short-term moving averages confirms bullishness. RSI has also entered bull territory, suggesting extended upside in the stock.
- Buy KANSAINER @ CMP of Rs 613 for a target of Rs 675 with a stop loss at Rs 580
The stock has broken out from a sideways consolidation pattern suggesting bullishness. Further, volumes have been good in the breakout candles, confirming the uptrend. Technical indicators are also in bull territory confirming strength in the stock.
(Aditya Agarwala is Senior Technical Analyst at YES Securities)
