Indian benchmark Indices ended a volatile expiry session marginally higher with a gain of 30 points, making it the fourth straight session of higher closing. Further, the Nifty50 index added 4% in this expiry amidst a spike in volatility. However, following the sharp up move this week, Nifty50 has reached slightly overbought levels on shorter time frame charts and a stiff resistance is seen between 14,950-15,000 levels. Failure to breakout of this hurdle immediately may trigger profit booking to levels of 14,750-14,650.
In the event of a minor correction or profit booking, traders should look to build long positions for targets of 15,000-15,150. On the flipside, if bulls manage to push the index beyond 15,000 in the coming trading sessions, the uptrend could extend to levels of 15,150-15,200. RSI has turned lower from an overbought territory, suggesting a temporary pause before Nifty resumes its upward journey.
Equity recommendation
Barat Forge: BUY
CMP: Rs 605
Target: Rs 640
Stop loss: Rs 585
The stock is on the verge of a breakout from a trendline resistance placed at Rs 610. A successful breakout on healthy volumes will trigger an up move to levels of Rs 640. Further, it took support at the 50% Fibonacci retracement level and turned upwards, confirming bullishness. Moreover, the RSI has formed a positive reversal as well, suggesting higher levels.
Pfizer: BUY
CMP: Rs 5,308
Target: Rs 5,600
Stop loss: Rs 5,160
The stock has resumed its upward journey after breaking out of a consolidation phase on healthy volumes. Moreover, the RSI has also turned upwards from the upper end of the bear zone, i.e. 60, which is a sign of strength.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
