Nifty View
The Nifty closed on a strong wicket with almost 1 per cent gain on Tuesday. During the session, towards the end, Nifty kissed its crucial resistance of 20 days EMA, placed at 18063.
For last four trading sessions, Nifty has been hitting higher highs and higher lows, which is a sign of accumulation. There have been multiple bottoms in the range of 17,750-17,800, which has become floor for the Nifty in the short term.
Sustainable level above 20 days EMA (18063), could pull Nifty towards the next resistance of 18,265. Any level above 18,265, would negate the positional down trend in the Nifty.
BUY
Kotak Bank
Last close: Rs 1,799
Targets: Rs 1,880; Rs 1,940
Stop-Loss: Rs 1,750
On January 13, 2023, double bottom formation at Rs 1,759 odd levels and long legged “Doji” candle stick pattern was formed. Doji candles becomes more reliable when it is found near crucial supports.
The stock has closed above its 5 days EMA resistance. RSI oscillator has exited the oversold zone, which indicates the possible bullish trend reversal in the stock.
BUY
Berger Paints
Last close: Rs 569.80
Targets: Rs 600; Rs 624
Stop-Loss: Rs 550
The stock has formed double bottom formation at Rs 560 on weekly charts and turned north. RSI oscillator has exited the oversold zone on the daily chart. Stock price has surpassed the short term resistances of 5 and 10 days EMA with jump in volumes.
(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).