Market repeatedly attempting breakout above all-time high, Nifty trend positive; check technical stock picks

Market repeatedly attempting breakout above all-time high, Nifty trend positive; check technical stock picks

By Nagaraj Shetti, Technical Research Analyst, HDFC securities

Technical Observation — NSE NIFTY 50: Nifty shifted into a follow-through upmove on Wednesday amidst a range movement and closed the day with gains of 40 points. After opening with a positive note, the market continued its upside momentum in the early part of the session. Minor intraday dips in between have been bought into and the market closed the day with modest gains. A thin body of positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates high wave or doji type of candle pattern at the highs, which signal emergence of volatility at the highs.

Stock PicksBuy Prism Johnson Ltd (CMP Rs 128)

After witnessing a sharp upmove in the months of May and June, the stock price (PRSMJOHNSN) has shifted into a consolidation with upside recovery mode as per weekly timeframe chart. The stock price has moved above the significant resistance of down sloping trend line at Rs 127 levels and is trading above it. The weekly 14 period RSI shows positive indication. Buying can be initiated in PRSMJOHNSN at CMP (128), add more on dips down to Rs 123, wait for the upside targets of Rs 138 and Rs 149 in the next 3-5 weeks. Place a stoploss of Rs 119.50.

Buy Indus Towers Ltd – (CMP Rs 167.70)

After breaking above the bullish pattern like rising three method type candle pattern at Rs 160 on the weekly chart in recent past, the stock price (INDUSTOWER) has maintained positive bias since past few weeks. Currently, placed at the edge of breaking above another hurdle of Rs 174-175 levels. Hence a sustainable move above this resistance is expected to bring sharp upside momentum for the stock price in the near term. Buying can be initiated in INDUSTOWER at CMP (167.70), add more on dips down to Rs 161, wait for the upside targets of Rs 182 and Rs 197 in the next 3-5 weeks. Place a stoploss of Rs 156.

(Nagaraj Shetti is Technical Research Analyst at HDFC securities. The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)