By Vishal Wagh
The Nifty index opened flat to negative and traded negatively for the most part of the day. It witnessed some recovery from the lower levels in the last hour of the session and closed with losses of around 112 points. Profit booking was seen in the index at a higher zone. An important level to watch on the upside is 18730. Sustain above the same we might head towards 19100 levels. It formed a bearish candle on a daily scale. On an hourly chart, the Nifty has been moving higher highs and higher lows formation confirming the bullish trend. On the weekly scale, Nifty made a Bearish candlestick which points out profit booking was seen in the index at a higher zone.
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Larsen & Toubro Outlook
BUY | CMP: Rs. 2154.05 | Target: Rs. 2350 | Stop Loss: Rs. 2075 | Return 9.09%
Since March 2022, the stock has been rising continuously in the upward channel with Higher Highs and Higher Lows formation. The price has taken support from the 50% Fib retracement level of the last Impulsive wave and settled just above the 20 & 50 Exponential Moving Averages, indicating the presence of strong price momentum. As per the Elliott wave’s analysis, the price has completed its second corrective wave, and moving toward the third impulsive wave indicates the trend may continue in near future.
Recently, the price has given a breakout of a 52-week high level (2078.55) after the golden crossover of EMA. On the momentum front, the MACD histogram is hovering in the positive territory with an inclining trajectory that points to a strong momentum. The momentum indicator RSI (14) has crossed 70 marks confirming the internal strength. Hence, based on the above technical structure we are expecting bullish movement for the week ahead. On the downside, it may find support around 2075 while upside resistance is intact at 2350.
Nestle India Outlook
BUY | CMP: Rs. 20241.75 | Target: Rs. 22000 | Stop Loss: Rs. 19700 | Return 8.69 %
From last one year, the stocks has witnessed consolidation post bullish rally. On a weekly timeframe the price has given a breakout of Invested Head & shoulder pattern and again retested the neckline of the pattern with Inverted Hammer candlesticks, which indicates a bullish set-up in the counter. At the same time, an oscillator Stochastic is alsosupportive for the long position with positive crossover.
On a four-hourly chart, the price has been trading in the downward-sloping channel for the last couple of days. However, the price has been buildup up just below the upper band of the channel indicating the breakout may happen in an upcoming session. At the same time, the MACD histogram hovers in positive territory with a bullish crossover confirming a long position. A momentum indicator RSI (14) reading is above 60 levels, which adds more strength on the upside. The stock has found immediate support below the prior swing which placed at 19700 while the upside profit booking level is intact at 22000.
(Vishal Wagh, Research Head, Bonanza Portfolio. Views are author’s own.)