Nifty formed a hammer pattern on the daily chart on May 19, indicating a possible trend reversal. It found support at 21-EMA, resulting in a decent recovery from the day’s lows. A positive divergence is observed on the hourly RSI, suggesting a possible change in momentum. On the higher end, resistance is seen at 18,300, while support is placed at 18,050.
Bank Nifty bulls made a strong comeback and managed to take the support of 43,500. This indicates that the bulls are still in control and that the uptrend in the index is likely to continue. Immediate resistance lies at 44,000. If the index is able to move above this level, it could witness a sharp rise towards 44,500 levels. Momentum indicator RSI took support at 60 level. This bullish signal indicates that the upward momentum is still intact.
The Nifty Financial Services index opened on a positive note above the previous day’s close. However, the initial positive sentiment turned into profit-booking ICICI Bank And HDFC Bank shares reversed gains. However, positive trend was seen in HDFC Bank in the second half of the day. axis Bank, and Bajaj FINSV hit the market, leading to a change in market direction. Fin Nifty managed to close above day’s high with decent volume, indicating positive strength and resilience in the market. The major resistance levels for the index lie at the previous higher levels of 19,500-19,600. On the downside, a key support for Fin Nifty lies near 19,340/19,260.
Purchase DLF But 472; Target: 500–515; Fall off: 454
DLF is one such stock which has recently experienced breakout with significant trading volumes on the weekly charts. It is currently in a strong uptrend, with evidence of buying activity at lower price levels. A positive crossover of the momentum indicator, RSI, confirms a buy signal. The stock has support near 454 and upside target of 500-515 is likely.
Purchase Coforge But 4,278; Target: 4,460-4,620; Fall off: 4,120
The stock remained above the 200-day moving average (DMA) on the daily chart, indicating a positive trend. Furthermore, a higher higher and higher lower low pattern is forming on the daily chart, suggesting upward momentum. On the weekly chart, there was a strong breakout with good volume as it closed above the resistance level. This breakout indicates a possible upside move in the stock. For traders considering a buy entry, it is advised to enter near the 4230-4240 range. The expected target for the trade is set at 4,440-4,620, indicating upside potential. For this trade one can maintain stop loss at 4120.
The author Rupak Dey is Senior Technical Analyst at LKP Securities
Disclaimer: The views and recommendations in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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