Bulls returned with a bang to reverse the previous session’s losses taking the headline Nifty50 back above the 17,350 level.
Further, the index took support at the previous cluster of lows placed at 16,800 which also happened to be the 200-DMA.
Going ahead a sustained trade beyond the 50-DMA which will act as an immediate hurdle placed at 17,465 may extend the uptrend to levels of 17,600-17,800.
However, failure to cross and sustain beyond this resistance zone of 17,400-17,465 will resume the choppy sessions dragging the Index lower to levels of 17,200-17,080.
Moreover, largely headlines Indices are still oscillating in a range between 16,800 on the downside and 17,800 on the upside.
Recommendations:
HDFC LIFE
BUY @ CMP 574
Target: 600
Stop Loss: 560
The stock has taken support at the previous cluster of lows which also happened to be the 50% Fibonacci retracement level and turned higher suggesting a possible trend reversal. Technical Indicators are also favouring the same.
BIOCON
BUY @CMP 404
Target: 424
Stop Loss: 392
Stock has taken support at the trend line in the recent throwback and turned upwards suggesting resumption of the uptrend. Further, RSI is also supporting the bullish view.
(The author, Aditya Agarwala, CMT, is Technical Analyst–Research at YES Securities)
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