Nifty Index Chart Analysis

Keep your eyes on 8620 as it acts as a major support.

Nifty Index Weekly Chart Analysis

A great deal of expectations was built after the US Fed and the BOJ chose to maintain status quo on rates. The Nifty, however, ended the week almost flat. The takeaway is that a rate cut by the RBI in October turns into a particular plausibility. That may be a morale booster for the rate sensitive stocks. The OPEC meeting will be watched closely, in spite of the fact that, chances of a quota on crude oil production does seem to be remote. The focus post the RBI meets will shift to the Q2 results starting mid-October. 

After displaying a consolidation type of pattern during the last week, Nifty witnessed yet another similar type of pattern during the week ended September 23, 2016. On the weekly chart, Nifty has formed a small positive candle with long upper shadow which has formed just above the last week's candle pattern. The formation of consecutive narrow range candle on the weekly chart is indicating a range bound movement or sideways consolidation within in the ongoing uptrend. However, formation of long upper shadows in the last couple of weeks' candle, suggest profit taking at higherlevels. Now going forward the zone of 8940-9000 is a strong resistance for the Nifty. If Nifty manages to close above this zone on weekly basis, it is likely to test 9100 levels. On the downside, level of 8620 will act as a major support for Nifty.

Decisive breach of this support will take Nifty up to the level of 8480. Weekly momentum oscillator RSI is comfortably trading above 60 levels. It is a positive signal for the Nifty.

Nifty Index Daily Chart Analysis
Niy aer consolidating in a narrow range during the rst three trading sessions of the week. Moreover, the signicant downside gap which was formed on September 12 has been lled as well. Now going forward, the level of 8750 will act as an immediate support for Niy and a decisive breach of this level will open up for correction up to the levels of 8640-8680. Nifty has been progressing well within the channel pattern. The on-going bullish trending sequence could deteriorate in case of breach below 8640-8680. On the upside, the level of 8900 will act as an immediate resistance for Niy and a decisive move above the level of 8900 will open for up-move up to the levels of 9000 and 9100. The daily 14-period momentum oscillator RSI at present is quoting around level of 57 and it has strong support around the levels of around 45-48.

STOCK RECOMMENDATIONS

JET AIRWAYS (INDIA)

BUY CMP Rs. 527BSE Code : 532617 
Target 2 : Rs.580  Stoploss : Rs.500 (CLS) 

The stock is currently trading at Rs.527. Its 52 week high/low at Rs.796/Rs.310 were made on January 13, 2016 and September 29, 2015. Since last few trading sessions, the stock witnessed rectangular consolidation in the range of Rs.520-542. In the current scenario, the stock has not only closed but also sustained above the technical level of rS.550. At the same time, the stock broke its 15-day EMA and 20-day EMA levels crossover which are Rs.542 and Rs.543 respectively indicating fresh breakout for more upward momentum. Moreover, the momentum oscillator RSI is quoting at 64-65 levels, which indicates strength. By calculating all, we recommend BUY in Jet Airways at Rs.527 level with a target of 560 followed by Rs.580 and a stop loss of Rs.500, so traders can initiate long position with given stop loss. 

KESORAM INDUSTRIES

BSE Code : 502937 CMP : 180
Target 1 Rs.195   Target 2: Rs.215  Stoploss : Rs.160 (CLS) 

The stock is currently trading at 180 levels. Its 52 week high and low at Rs.182.10/rS.72.10 were made on September 26, 2016 and February 12, 2016. Recently the stock witnessed bullish breakout aer it broke its technical level of Rs.150. Aer that the stock formed "Three White Soldiers "pattern with huge volumes and it comes around Rs.170 in 1-year daily chart. While looking at the weekly pattern, the stock also witnessed 'higher tops higher bottom' formation, indicating that the stock may continue its upward momentum. On the lower levels, the scrip has vital support around its 50 day EMA level of Rs.144. Moreover, the momentum oscillator RSI indicates some more strength. By taking into consideration all the parameters, we recommend BUY in Kesoram Industries at Rs.180 level with a target of Rs.195 followed by Rs.215 and maintain a stop loss of Rs.160.