Nifty50 continues to make higher highs closing at a fresh all-time high, above the 17,600 levels as bulls continue to dominate. Meanwhile, with every new high on the Nifty index, it is getting deeper into the overbought territory making it susceptible to bouts of sudden profit booking. However, a sustained trade beyond 17,650 will extend the up-move taking the index higher to the levels of 17,720-17,750.
On the flip side, a trade below 17,570 could trigger corrections dragging the index lower to the levels of 17,430-17,350. Moreover, with technical indicator RSI sitting at an extreme overbought territory, traders should be cautious as profit booking can be seen at anytime.
Further, Bank Nifty led from the front as it broke out into a new lifetime high.
Equity recommendation
Buy at CMP: Rs 755
Target: Rs 790
Stop Loss: Rs 730
The stock has resumed an uptrend after breaking out of a narrow consolidation phase due to good volumes. Technical indicator RSI has turned upwards after taking support at the 60-level suggesting strength in the stock.
Buy at CMP: Rs 865
Target: Rs 910
Stop Loss: Rs 840
Stock is on the verge of a breakout from a narrow consolidation phase. Further, strong volume growth in the run-up before the consolidation phase suggests that the breakout should follow. Technical indicator RSI turning upwards from the 50-level is suggesting a breakout is on the cards.
(Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)
