The Nifty rose for the 6th straight session on Tuesday, closing at 17,825. The position trend on the Nifty is bullish as it held a higher upper and lower formation on the daily chart.
Nifty’s next resistance lies at 18,114, which happens to be the previous swing high on the weekly chart.
Long positions should be held with the trailing stop loss of 17,600 on a closing basis.
Purchase range: Rs 164.25 – Rs 159
Objectives: Rs 178, Rs 190
Stop-loss: Rs 156
The stock broke out of the descending channel on the weekly line chart. The breakout is accompanied by a rise in volumes.
Indicators and oscillators turned bullish on the weekly chart. The action has formed up and down on the daily chart.
Tata Motors DVR
Purchase range: Rs 240.65 – Rs 234
Objectives: Rs254, Rs 263
Stop-loss: Rs 230
The stock broke through the crucial double top resistance placed at odd levels of Rs 236. The stock also broke after the price consolidation of the last 5 weeks with rising volumes.
The stock is placed above all major moving averages, indicating a bullish trend over all time frames. The automotive sector outperformed and is expected to continue over the next few weeks.
(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC Securities. Opinions expressed are personal).