SELL NIFTY | TARGET: 11,050 | STOP LOSS: 11,230
The Nifty index is facing stiff resistance around 11,200 and finding it difficult to sustain above the same for the past couple of sessions. The momentum indicators and oscillators have reached overbought territory on the daily chart which hints at some distribution at higher levels. On the derivative front, call writers are shifting their positions towards 11,200 strikes which will act an immediate resistance. Thus, aggressive traders can initiate a short position with a strict stop loss of 11,230.
SELL TATA MOTORS | TARGET: Rs 97 | STOP LOSS: Rs 105
The stock has provided breakdown from a head and shoulder pattern on the daily chart. The neckline is placed at 105 levels which will now act as an immediate hurdle. It is also facing the resistance of its short term 21-DMA which is also placed at 105 levels. The momentum indicator RSI has also breached the major support of 56 levels on the daily chart.
SELL BAJAJ FINSERV | TARGET: Rs 5,950 | STOP LOSS: Rs 6,320
The stock has formed a double-top pattern on the daily chart and also breached its rising trend line which was placed at 6,250 levels. The overall structure indicates that it is likely to test its previous swing low which is placed at 5,950 levels. The MACD has provided a sell crossover on the daily chart which hints at further weakness in the counter.
BUY INFY | TARGET: Rs 1,010 | STOP LOSS: Rs 905
The stock is making a higher top and a higher bottom pattern on the daily chart. It has also provided breakout from a pennant pattern on the daily chart. It is also trading well above its long term moving averages. The MACD has provided a buy crossover on the hourly chart which hints at a further positive momentum in the counter.
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks.Views are personal.