On 27th September 2019 Nifty opened at 11,556, made a high of 11,593 low of 11,499 and finally closed at 11,512. Nifty closing at the low point of the day indicating weakness in the market, which might continue next week also. As we said below 11,550 nifty turned bearish. Nifty has to sustain above 11,700 for sustained bullishness.
Nifty short term support stands at 11,500. On the higher side, 11700 is the major hurdle for nifty. If Nifty manages to break 11,600 on the hourly chart then we can see a further rally.
As we can see from the daily chart of Nifty is above 200-day moving average and 50-day moving average. And the trend on daily is sideways. Nifty is near to a resistance trend line, and a gap up or a breakout above 11,600 with volume is required for Nifty to further rally. If Nifty goes below 11,500 then it will be a warning sign for the bulls in the short term.
In the hourly chart, we can see Nifty is forming a flag pattern and a break above 11,580 will confirm this view. So go long only if we close above 11,580 in the hourly chart.
Stocks analysis for the Week
VEDL: the stock has broken trendline support. Go short below 156 with a stop loss of 160 and a target of 152 and 146.
IRB: Sell IRB on any rally till 81 with a stop loss of 83 and target of 75.
Divis Lab: Buy Divis lab at 1660 to 1650 with stop loss below 1635 and target of 1700. It can also be held positionally with same stop loss.
Ambuja Cement: Buy it once it closes above 209 with a stop loss of 205 and a target of 220. It can also be held positionally with same stop loss.
GSFC: sell GSFC at 80-81 with a stop loss of 83 and target of 76
Chart of the Week
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