Nifty needs to regain 17777 to attempt touching 18000, support at 17550; check stock to buy

Nifty needs to regain 17777 to attempt touching 18000, support at 17550; check stock to buy

By Rahul Shah

NSE Nifty 50 and S&P BSE Sensex managed to end last week in positive territory despite highly volatile trading sessions in the short spun this week. Sensex gained 183 points or 0.3% to close at 59,646 while touching a high of 60,411, just less than 2000 points away from the record high (62,245 on October 24, 2021). Nifty advance 0.3% or 60 points to close at 17758. There was selling pressure on the last day on account of weakness in the global markets. Traders were booking profit after the index gained nearly 10% in the previous few sessions amid a bearish trend overseas. A depreciating rupee and geo-political tension dampen the market sentiment. However, there was stock-specific action in the market.

Also Read: Nifty may fall to 17300 below 17700, Bank Nifty to trade mixed; use Put Ladder in Nifty for 25 Aug F&O expiry

Global markets ended lower following a four-week winning streak for the benchmark S&P 500. Nasdaq Composite slipped 2% while Dow Jones managed to end positive. Investors have been closely watching the Federal Reserve for any reaction to shifts in inflation or the economy along with keenly watch US and European countries PMI data. Any sign that inflation is peaking or cooling has given Wall Street hope that the Fed could consider easing up on rate hikes. Comments from the US Fed official James Bullard another big rate increase left investors concerned and urging another 75 basis-point move.

Nifty has formed a Bearish Engulfing on daily scale while a Shooting Star or a Doji on weekly scale which indicates some profit booking declines at higher zones. Now it has to cross and hold above 17777 zones for an up move towards 17888 and 18000 zones whereas support is intact at 17650 and 17550 zones

Canara BankTarget: Rs 250 | Stop loss: Rs 224

Canara Bank has given a breakout of the consolidation and it has formed a strong bullish candle on the daily scale which indicates positive price movement ahead. There is momentum across the PSU Banks which will take the prices higher. RSI oscillator is positively placed on daily and weekly charts indicating strength in the counter. Considering the current chart structure, we advise traders to buy the stock for up move towards 250 with a stop loss of 224.

Also Read: Buy these two stocks for gains while Nifty forms bearish pattern on daily charts, support at 17500

Ambuja CementTarget: Rs 445 | Stop loss: Rs 410

Ambuja cement has given a breakout of the consolidation zone and is making higher highs since last 4 trading sessions which indicates that the trend is positive. There is strong momentum across the cement space which will support the price to move higher. RSI oscillator is positively placed on daily and weekly charts indicating strength in the counter. Considering the current chart structure, we advise traders to buy the stock for up move towards 445 with a stop loss of 410.

(Rahul Shah is a Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. The views expressed are the author’s own. Please consult your financial advisor before investing.)