Indian benchmark index Nifty50 ended trade in the green with gains of 128 points as bulls took control of the proceedings once again following a few volatile sessions. Further, the index is approaching its recent high of 16,700. A sustained trade beyond this resistance before the monthly expiry session on Thursday will extend the up move, taking the index higher to levels of 16,790-16,900.
However, failure to breakout and sustain above this immediate hurdle may trigger profit booking, dragging the Nifty50 lower to levels of 16,500-16,400. Further, technical indicator RSI remains above the 60-level even on a shorter time frame chart, indicating strong bullish momentum dominant in our markets.
Equity recommendation
HDFC Bank: BUY
CMP: Rs 1,558
Target: Rs 1,640
Stop loss: Rs 1,515
The stock has resumed an uptrend after breaking out of a narrow consolidation pattern on good volumes. Technical indicator RSI has turned upwards after forming a positive divergence, confirming the bullishness.
: BUY
CMP: Rs 5,760
Target: Rs 6,200
Stop loss: Rs 5,500
The stock is on the verge of a breakout from a trendline resistance formed joining recent highs on very good volumes. Further, a sustained trade beyond Rs 5,850 will take the stock to new highs. RSI is also suggesting bullishness going forward.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
