After a pause on Friday, Nifty resumed its uptrend on Tuesday where it gained 140 points to close at 13,109 levels. The markets’ trend is still bullish with higher top higher bottom formation on the daily and weekly charts On the lower side, recent swing low of 12,790 will act as a support. Nifty needs to close below 12,790 level to negate the bullish set up.
Therefore, for traders our advice is to remain bullish with the trailing stop loss of 12,790 levels. On the higher side, Nifty may find resistance in the vicinity of 12,300-12,400 levels where we have seen call writing.
Nifty Midcaps & Small cap Index has already broken out on the weekly charts. We expect midcaps to continue their outperformance for the coming days
BUY CENTURY PLY (Rs 209): | Target: Rs. 230 | Stop-loss: Rs 199 | Return: 10%
After consolidating for the last few days, the stock price has broken out on the daily charts with surge in volumes to close at highest level since April 2019. The stock’s trend is positive where the stock is trading above all Important short term and long-term moving averages. RSI Oscillators is placed above 70, indicating strength in the stocks. Therefore, we recommend buying Century Ply at CMP of Rs 209 and average at 203 for the target of 230, keeping a Stop Loss at 199
BUY UFLEX (Rs 361): | Target: Rs 400 | Stop-loss: Rs 345 | Return 11%
After correcting for the last few days, the stock price resumed its uptrend by closing at highest level since August 2020 with higher volumes. The stock’s trend is positive where the stock price is trading above its all-important moving averages. +DI is placed above the -DI while ADX line is placed above 25 level, indicating Momentum in the uptrend. The stock price is forming bullish higher tops higher bottom on the daily chart. Therefore, we recommend buying UFLEX at CMP of Rs 361 and average at 353 for the target of 400, keeping a Stop Loss at 345.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.
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