Nifty50 closed marginally in the red following a sharp recovery in the previous session as bears made sure the index stays below the 20-DMA line placed at 18,050, which is acting as a key hurdle on the upside. Further, heading into the weekly expiry session and auspicious Muhurat trading, Nifty50 has entered a narrow trading range between 17,800 and 18,050. A sustained trade above 17,800 could trigger an up move, taking the index higher to levels of 18,050 where bears continue to maintain selling pressure. However, failure to hold onto the lower end of the range, i.e. 17800 could resume fresh selling dragging Nifty50 lower to the levels of 17,700-17,600.
Equity recommendation
HDFC Bank
BUY at CMP Rs 1607
Target: Rs 1890
Stop Loss: Rs 1560
The stock has turned upwards after taking support at the trendline and the 50-DMA. Further, volumes have been good in the buying, as bullish candlestick following the hammer candlestick suggesting bullishness. Moreover, RSI has formed a positive reversal confirming the uptrend.
BUY at CMP Rs 972
Target: Rs 1070
Stop Loss: Rs 920
The stock is on the verge of a breakout from an Ascending Triangle pattern neckline suggesting bullishness dominant. Further, RSI moving back above the 60-level confirms the uptrend.
(The author, Aditya Agarwala is Senior Technical Analyst at YES Securities. Views are his own.)
