By Nagaraj Shetti
After witnessing sharp weak point on Monday and Tuesday, Nifty continued to point out follow-through weak point on Wednesday and closed the day decrease by 21 factors. A small negative candle was shaped with minor decrease shadow. The market motion of Wednesday point out volatility and emergence of minor shopping for curiosity from the decrease ranges.
The space of 11100-11000 has acted as a support within the final two classes and led to a minor upside bounce. The formation of overlapping candles of the final couple of classes and a current formation of decrease shadow might sign a risk of upside bounce from right here or from the decrease ranges.
The optimistic sequential motion like increased tops and bottoms of the previous few months has been damaged lately and Nifty shaped a brand new decrease high at 11618 on sixteenth Sept. The current swing excessive of 11794 and the formation of bearish engulfing sample as per each day and weekly timeframe chart may very well be thought of as an necessary high reversal sample as of now. This swing excessive is unlikely to be breached on the upside within the close to time period.
Having shaped a brand new decrease high lately, the general technical setup counsel that any upside bounce from right here might ultimately be a decrease high formation round 11300-11400 within the subsequent few classes and one may anticipate promoting stress to renew from the highs.
The brief time period trend of Nifty continues to be negative. Having confirmed indicators of shopping for rising from the lows on Wednesday, there’s a risk of minor upside bounce try within the subsequent couple of classes and that anticipated upside bounce may very well be brief lived. The close to time period draw back goal is undamaged round 10800-10700 by subsequent week. Immediate resistance is positioned at 11260.
BUY- BATAINDIA LTD (CMP Rs 1337.10)
The stock value on the weekly chart has been shifting in a bigger vary sure motion over the previous few months. We observe a formation of constant increased lows and the stock value is repeatedly testing the hurdle of Rs 1360 ranges within the final two weeks. The resistance of 20 EMA has been surpassed on the upside at Rs 1328 lately and the stock value is now positioned on the upside breakout of the consolidation. Daily and weekly RSI exhibits optimistic indication.
Buying might be initiated in Bata India Ltd at CMP (1347.10), add extra on dips right down to Rs 1285, watch for the upside goal of Rs 1445 within the subsequent 3-4 weeks. Place a stoploss of Rs 1260.
Buy- Fortis Healthcare Ltd (CMP Rs 135.15)
After exhibiting a good upmove in month of June-July 2020, the stock value has shifted right into a gradual decline with vary sure motion within the final 6-7 weeks. The decrease space of 20 interval EMA has acted as a strong support within the final couple of weeks and the stock value moved up from close to Rs 130 ranges for few events. Hence, the current swing low of Rs 130 might now be thought of as a brand new increased backside of the sequence and the stock value is anticipated to maneuver up from right here. Weekly momentum oscillator sign optimistic outlook forward.
Buying might be initiated in Fortis Healthcare Ltd at CMP (134.60), add extra on dips right down to Rs 129, watch for the upside goal of Rs 145 within the subsequent 3-4 weeks. Place a stoploss of Rs 126.
(Nagaraj Shetti is a technical analysis analyst at HDFC Securities. The views expressed are the creator’s personal. Please seek the advice of your funding advisor earlier than investing.)