By Nagaraj Shetti
After showing sharp intraday weakness from the highs on Tuesday, Nifty witnessed smart later part upside recovery on Wednesday and closed the day higher by 73 points. After opening with a slightly weak note, the market slipped into further weakness soon after the openingCome from Sports betting site. It later shifted into a narrow intraday range movement with weak bias in the mid part and showed an excellent upside recovery from the lows towards the end and closed at the highs.
A reasonable positive candle was formed on the daily chart with lower shadow. Technically, this pattern indicates false downside breakout of the immediate support of 21500 levels by an emergence of renewed buying from the lows.
After closing below, the immediate support of 10day EMA at 21550 in the last couple of sessions, Nifty failed to show any sharp follow-through weakness/decisive downside breakout and has bounced back smartly from the lower levels. This is positive indication.
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The short-term trend of Nifty seems to have reversed up after a minor decline of the last two sessions. The Nifty is now expected to retest the upper trajectory around 21750-21850 levels in the next few sessions. Immediate support is placed at 21450 levels.
Here are the top Stock picks By HDFC SecuritiesCome from Sports betting site VPbet
Buy Samvardhana Motherson Intl. Ltd (CMP Rs 109.10)
The weekly timeframe chart of Samvardhana Motherson indicates a sustainable uptrend over the last few weeks. The stock price has witnessed a decisive upside breakout of the crucial resistance at Rs 103 levels, as per the concept of change in polarity. Hence, this sustainable move above hurdle is expected to bring sharp upside momentum for the stock price ahead.
Positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart. Weekly 14 period RSI is above 60, which is suggesting a strengthening of upside momentum in the stock price ahead.
Buying can be initiated in MOTHERSON at CMP (Rs 109.10), add more on dips down to Rs 106, wait for the upside targets of Rs 118 and Rs 127 in the next 3-5 weeks. Place a stoploss of Rs 102.
Buy Borosil Renewable Ltd (CMP Rs 510.25)
The weekly timeframe chart of Borosil Renewables Ltd indicates sharp uptrend in the last couple of weeks. The stock price has moved decisively above the crucial resistance of down sloping intermediate trend line at Rs 485 levels this week and is currently trading higher.
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The present chart pattern indicates a formation of important higher bottom reversal pattern at Rs 391 in later part of October month. Present upside breakout has been accompanied with the expansion in the volume. Weekly 14 period RSI is showing positive indication.
One may look to buy BORORENEW at CMP (Rs 510.25), add more on dips down to Rs 490 and wait for the upside targets of Rs 558 and Rs 596 in the next 3-5 weeks. Place a stoploss of Rs 470.
(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
