Nifty ended with cuts on Monday, dragged by auto, IT and consumer stocks after negotiations between Iran and the US ended without any outcome. A long green candle was formed on the daily chart at the lows, which indicates the formation of a bullish counterattack pattern.
Decoding the charts, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said after a series of bearish lower tops and lower bottoms formation in the recent past, Nifty registered a new higher low at 23,555 on Monday, which could be a sign of relief for bulls to sustain the recent bounce-back. "The weakness of Monday has not damaged the underlying near-term uptrend status of the market. Nifty is now placed at the crucial support of 23,500, and one may expect further upside in the near term. Immediate resistance is at 24,100," he added.
Domestic stock markets are closed today because of Dr Baba Saheb Ambedkar Jayanti holiday.
Buy MCX at Rs 2,765 | Upside: 11% | Stop Loss: Rs 2,625 | Target: Rs 3,059
MCX is exhibiting a strong bullish structure, consolidating within a rising channel and now attempting a breakout above the upper trendline. Price action shows consistently higher highs and higher lows, confirming an established uptrend. The stock is trading above key moving averages, which are positively sloped, indicating sustained strength. RSI is trending in bullish territory, reflecting improving momentum without extreme overbought conditions. Volume remains supportive during upward moves, suggesting accumulation. A successful breakout with follow-through can trigger further upside, making it a favourable setup for a positional trade aligned with the prevailing trend.
(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)
SONACOMS is displaying a bullish breakout from a falling channel pattern, supported by a strong impulsive candle indicating demand resurgence. Price action shows a shift from lower highs to potential higher highs, suggesting early trend reversal. The breakout is accompanied by improved participation, hinting at accumulation. Momentum indicators are turning positive, with RSI moving higher toward bullish territory. Short-term moving averages are likely to turn supportive, reinforcing the upward bias. Sustained price action above the breakout zone can lead to trend continuation, making the setup favourable for a positional upside move.
The stock has witnessed a strong bullish development by closing above a key resistance level, indicating a potential trend continuation. It has also moved above its crucial short-term moving averages, while reclaiming long-term moving averages, which strengthens the overall positive structure. Momentum indicators further support the uptrend, as RSI has entered a bullish crossover and is sustaining above the 60 mark, reflecting strong buying interest. This setup suggests continued upside potential in the stock with improving strength across both price and momentum indicators.
(Vatsal Bhuva, Technical Analyst at LKP Securities)
Buy Adani Energy Solutions at Rs 1,176 | Upside: 5% | Stop Loss: Rs 1,135 | Target: Rs 1,235
The stock has witnessed a strong breakout, followed by sustained buying interest, indicating strength in the ongoing upward move. This bullish price action is further supported by momentum indicators, as RSI has also given a breakout and is holding a bullish crossover, reflecting improving momentum. The confluence of price and momentum signals suggests continuation of the trend. Based on the current setup, the stock is likely to maintain its upward trajectory and can potentially test 1,240 in the near term.
Buy Olectra Greentech at Rs 1,215 | Upside: 5% | Stop Loss: Rs 1,160 | Target: 1,280
A falling trendline breakout is clearly visible on the daily chart, and post-breakout, the stock is sustaining above the breakout zone with a strong bullish candle supported by noticeable volume expansion, indicating fresh buying interest and improving sentiment. The RSI is also supporting the price action as it has moved above the 60 mark while forming higher lows, reflecting strengthening momentum and a clear shift from a bearish to a bullish bias. Additionally, after a prolonged downtrend and trading well below its long-term 200 DMA, the stock has reclaimed its 50 DMA and is attempting to sustain above the 100 DMA, which improves the overall structure and suggests a potential move towards the 1,250–1,280 zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
