By Nagaraj Shetti
The choppy movement continued in the market on Wednesday and the NSE Nifty 50 closed the day lower by 31 points amidst narrow range movement. After opening with a negative note, the market shifted into a sustainable upside recovery in the early-mid part of the session. It later moved into a range for the rest of the session. A long bull candle was formed on the daily chart after opening lower. Technically, this pattern indicates sideways movement in the market around 17750-17400 levels. Wednesday’s upside recovery after a weak opening signal an emergence of buying interest from the lows. This is a positive indication for the market ahead.
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The short-term trend of Nifty continues to be range bound at 17750-17400 levels. Having moved up from near the lower range on Wednesday, there is a possibility that Nifty could make an attempt towards upper range and also crucial trend line resistance around 17800 levels in the coming sessions.
Buy BF Investment (CMP Rs 312.25)
After showing upside bounce post downward correction in the last week, the stock price has witnessed a sharp upside breakout of the down sloping trend line at Rs 300 levels in this week and is currently trading higher. The stock price is moving up as per higher tops and bottoms on the weekly chart. The volume has started to rise during upside breakout in the stock price and weekly RSI shows positive indication.
Buying can be initiated in BFINVEST at CMP (Rs 312.25), add more on dips down to Rs 300, wait for the upside targets of Rs 335 and Rs 365 in the next 3-5 weeks. Place a stop loss of Rs 288.
Buy Balrampur Chini Mills (CMP Rs 376)
The stock price has been in a sustainable up move in the last few weeks. We observe positive chart patterns like higher highs and lows over the period of time, which signal strength of an uptrend. Now, the stock price in an attempt to stage an upside breakout of crucial resistance of the down trend line at Rs 377-378 levels. The positive pattern of volume and weekly RSI indicates more upside for the stock price ahead.
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One may look to buy BALRAMCHIN at CMP (Rs 376), add more on dips down to Rs 360 and wait for the upside targets of Rs 410 and Rs 450 in the next 3-5 weeks. Place a stop loss of Rs 349.
(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)