Nifty posted smart recovery on Friday trading session to signal reversal on daily candlestick, with formation of ‘piercing line’ pattern and closed above 5,850 levels. As levels of 5,700 was tested for the second occasion after Nov 2010, it can be also construed to a ‘double bottom pattern’ and a move past 6,000 levels on closing basis in coming weeks, should set a stage for Nifty to test its all time high of 6,357. We expect Nifty to trade with positive bias as long it sustains above 5,800 levels.
Jindal steel and power extended gains for second straight week and closed above the critical resistance mark of Rs695 which turned out to be a major hurdle. With RSI trading above the positive crossover accompanied by fresh buy signal in MACD,
momentum in the counter exhibit strength and move above Rs704 could accentuate buying action in the counter. A falling resistance line drawn from the peak Rs755
We advise buying stock above Rs704 with stop loss of Rs690 for target of Rs734.
Wipro Ltd on the daily chart has signaled a breakout from inverted head and shoulder pattern on Friday trading session with neckline persisting at Rs442 and spurt in volumes. With MACD about to cross above the reference line and RSI rallying with ease, the momentum in the counter remains extremely strong. However it has been observed in the past that after a breakout, an attempt is retest the neckline, which in this case stands at R443. Expansion in volumes at the time of price increase corroborate uptrend in the counter. We advise buying stock in the range of Rs443- 447 with stop loss of Rs437 for target of Rs467.
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