Monday, October 12, 2020

ENGLISH VERSION OF MY ARTICLE IN TODAY'S SANDESH NEWPAPER

 

Bulls continued to call the shots as Nifty surged 4.4% this week, extending last week's 3.3% upmove. This was the best weekly gain for the benchmark in four months which helped it close at the highest level since the week ended 20th February 2020.

Nifty IT and Bank indices were the star performers of the week, rising 8.6% and 7.2% respectively. This was the best weekly performance for the IT index in nearly six months.

Sour point however was the stark underperformance of the broader indices. Nifty mid-cap index fell 0.2% for the week while the small-cap index rose just 0.3%.

Coming back to Nifty, 12246, the top made in February, is the next upside target to eye. Upon crossover of 12246, 12430, the top made January, would be the next major target/resistance. Immediate support on the hourly chart has moved up to 11730, with the stop-loss of which, longs positions can be held on to.

For Banknifty, 24200, the top made in September, is the immediate hurdle, upon crossover of which, 25232, the top made in August, would be the next major target to eye. Immediate support on the hourly chart has moved up to 23000, with the stop-loss of which, long positions should be held on to.

GNA AXLES (CMP: 238.50) : The stock has been consolidating in 256-212 range for last one and a half month. On Friday, the stock rose 5% with volumes which were 3-times average 10-day volume and is likely to extend the upmove next week. The stock can retest 256, the upper end of the range mentioned above. The stop-loss should be placed at 228.

PNB (CMP: 28.90): The stock, after a steep fall in September, has been in a consolidation mode for last 10 days. During this consolidation phase, it has repeatedly taken support at 27.65 level, making that a strong near term support. On Friday, the stock broke out of a downward sloping trendline adjoining recent tops on the daily chart. The stock can be bought at current level for the target of 30.40 followed by 32. The stop-loss should be placed at 27.65.

UNION BANK (CMP: 24.90) : Union Bank had made a low of 22.65 in March this year and nearly revisited this bottom by touching a low of 23.65 on 25th September.  Since then, the stock has been consolidating in a narrow range. On Friday, the stock broke out of a downward sloping trendline adjoining recent tops on its daily chart with good volumes. The stock should be bought at current level for the target of 26.55. The stop-loss should be placed at 24.20.

HPCL (CMP: 176): The stock has been in a downtrend and touched a low of 169.65 this week, which roughly coincided with the bottom made in May this year. However, on the daily chart, when the price made a lower bottom this week, RSI made a higher bottom, which is called positive divergence and suggest that the selling pressure is reducing. Moreover, the stock on Friday, broke out of a trendline resistance with good volumes. The stock can be bought at current rate for the target of 183. The stop-loss should be placed at 173.

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