Nifty Index Chart Analysis

NIFTY WEEKLY CHART


Indian markets started the week on a bearish note but its momentum shifted towards bulls on Tuesday and witnessed range bound trade in the later part of the week. In the end, Nifty ended the week on a positive note with gains of about 1.28 per cent. On the news flow front, the Essar Rosneft deal seemed to turn the tide in favour of Indian Banks. ICICI Bank,a major beneficiary of the deal registered smart gains. The GST Council Meeting which was held during the week between the Centre and states ended without reaching into a consensus on tax structure. Going forward, the on-going quarterly performance results by companies shall trigger volatility and stock specific movements. On the weekly chart, Nifty formed a ‘Bullish Harami' candlestick pattern; this candlestick pattern indicates the bearish trend may be reversing. The sequence of higher top and higher bottom from the lower level of 6825 is intact. As per the sequence of higher top and higher bottom, the zone 8470-8510 is a higher bottom and hence this zone will act as a strong support for nifty as per weekly time frame chart. A close below the zone of 8470-8510 may open up for correction up to levels of 8330-8240. However, immediate support for nifty is placed around levels of 8620; a decisive breach of this support zone may result in re-test of major support zone of 8470-8510. On the upside the zone of 8735-8750 is an immediate resistance zone for nifty and next major resistance is placed around levels of 8830-8860. A close above the major resistance zone may open up for an up move up to levels of 9000-9100.

NIFTY DAILY CHART

Nifty after registering a swing low of 8506.10 level, witnessed a strong bounce back on the back of positive global cues and short covering. Thereafter, Nifty has moved in a narrow range. Now going forward, the zone of 8475-8506 will act as a strong support for Nifty. A close below this level may open up for correction up to levels of 8400-8330. On the upside Nifty needs to sustain above the zone of 8730-8750, if it does the sequence of lower top and lower bottom pattern unfolding from the recent swing high of 8968.70 will be breached. A close above 8730-8750, may open up gates for up-move up to the levels of 8830-8860. The daily momentum oscillator is trading near 50 levels. The RSI needs to sustain above 52 levels for fresh momentum.
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Stock Recommendations

BASF INDIA LTD

BSE Code : 500042

Buy ……..CMP @ 1220

TGT 1 … Rs1270 TGT2 1300 SL…. 1160

The stock BASF is currently trading at Rs 1250. Its 52-week high/low stands at Rs 1288/ Rs 700 and were made on October 24, 2016 and February 12,2016. Looking at the 1-year daily chart, the stock formed "Higher Tops Higher Bottom" pattern with significant volume. The stock also formed "V" pattern in 2- year weekly chart which is also indicating that script may continue with its northward momentum. On May 23,2016, the stock witnessed bullish breakout to sustain above the technical level of 1060, which is its 200-day EMA level. Moreover, the momentum oscillator RSI is indicating positive signal as its quoting at 51-52 levels. By taking into consideration all the parameters, we recommend buy in the range of 1240 to 1250 levels with a target of 1300 followed by 1330 and a stop loss of 1190.

BSE Code : 5000420

BUY ....... CMP Rs.1563

Target 1 ...Rs.1630 Target 2 . Rs.1710 Stoploss. Rs.1480

The stock of Torrent Pharma is currently trading at 1600 level. Its 52 week high and low stands at Rs 1767/ Rs 1190 and had been made on August 25, 2016 and February 12, 2016. From last couple of months, the stock of Torrent Pharma has been consolidating in wide range majorly in and around Rs 1580-1700. On last week of July 2016, the stock gave ‘Bullish Engulfing' pattern breakout with huge volumes at the technical level of Rs 1400. At the same level, the stock also witnessed a breakout from its 100-day EMA and 200 day EMA level. At present, the scrip is looking to sustain above these levels and may again cross its 52-week high. By taking into consideration all the parameters, we recommend buy in Torrent Pharma at Rs 1600 level with a target of Rs 1630 and Rs 1710 and keeping a stop loss of Rs 1480.