Bears dominated the D-Road for the second day in a row as benchmark index Nifty ended commerce with a lower of 120 factors, a decline of virtually 300 factors in simply two buying and selling periods. The index additionally broke down from a trendline assist shaped, becoming a member of latest highs positioned at 15,700 ranges, indicating weak spot dominant at the moment.
Bulls, nonetheless, did handle to maintain the index above its 50-DMA positioned at 15,578, which goes to behave as a key assist line going forward. A sustained commerce again above the 15,700 stage might set off a brief masking rally taking the index to ranges of 15,800-15,840.
On the flipside, failure to maintain its head above the fast hurdle of 15,700 could lengthen revenue reserving, dragging the index decrease to ranges of 15,578-15,500. Momentum indicator, RSI on a shorter timeframe has turned northwards from excessive oversold territory, suggesting {that a} brief masking rally can’t be dominated out within the coming periods.
Fairness suggestion
Berger Paints: BUY
CMP: Rs 865
Goal: Rs 915
Cease loss: Rs 830
The inventory has resumed uptrend after breaking out of a slender consolidation section and trendline resistance on good volumes. Technical indicator RSI turning upwards from the 60-level suggests prolonged upside within the inventory.
Maruti: BUY
CMP: Rs 7,232
Goal: Rs 7,600
Cease loss: Rs 7,050
The inventory has turned upwards after taking assist on the 61.8% Fibonacci retracement stage following its latest correction, which additionally occurs to be the 50-DMA. Additional, it continues to make increased highs and better lows, suggesting bullishness. RSI has additionally turned upwards from the decrease finish of the bull zone, i.e, 40, suggesting an up transfer from right here on.
Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his personal.