May 29, 2024
Stocks to buy: Charts suggest upside for ACC, Maruti Suzuki shares, Nifty support at 16650
By Rohan Patil
Last week was super volatile for the Benchmark index where prices traded in both directions and kept the traders on the sideline without giving any specific direction. Nifty has formed a Doji candlestick pattern on the weekly chart which indicates indecision among the trades.
The immediate support for the Nifty is placed near its 50 WEMA which is placed at 16650 levels and the upper band of the index is capped at 17400 levels if the index is closed above the said levels then the gate for the prices is open till 17700 levels.
Bank Nifty weakness continues
The Bank Nifty continued to trade in negative terrain for the two consecutive weeks and the index closed with a loss of more than three per cent on the weekly chart. Bank Nifty underperforms, down 2.20% as against Nifty losses of 1.28% on the 22nd April session.
The Banking index has formed a bearish island reversal pattern on the daily chart and the gap created on 18th April was felt unfiled and is acting as near-term resistance. The pries closed below its (21, 50 & 100) – day exponential moving averages on the daily time frame and the oscillator RSI (14) has drifted below 50 levels and also facing a strong resistance of a trend line near 60 levels.
The immediate support for the Bank Nifty is placed near 35000 levels and the upper band of the index is capped at 37500 levels if the index is closed above the said levels then the gate for the prices is open till 38200 levels.
ACC: BUYTarget: Rs 2385 | Stop Loss: Rs 2185Return: 5.50%
Over the past two months prices have formed a basing formation and in terms of classic technical stock has formed a bullish inverted head & shoulder pattern on the daily interval.
On April 21 prices have given a decisive breakout above its neckline resistance which is also a breakout of inverted head & shoulder pattern at 2270 levels. The breakout was followed by an above-average volume and prices successfully closed above its 21- day exponential moving average on the daily time frame.
The majority of indicators and oscillators are also in bullish range shift mode and reading above their line of polarity.
MARUTI Suzuki India: BUYTarget: Rs 8300 | Stop Loss: Rs 7680Return 5%
After a strong reversal from the lower levels, MARUTI share price consolidated in a rectangle pattern for almost one month. On April 22, prices witnessed a breakout above their trend line resistance placed at around 7800 levels.
The recent back to back green candles on the daily chart have given a breakout above its 21-day exponential moving average on the daily interval. We have also observed a gradual increase in the volumes in the last couple of trading sessions. Currently, we are expecting a rise in the share price of the MARUTI as indicators are moving higher above is previous high.
(Rohan Patil is a Technical Analyst at Bonanza Portfolio. Views expressed are the author’s own. Please consult your financial advisor before investing.)
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