By Nagaraj Shetti
The upside momentum continued in the market for the third consecutive sessions on Wednesday and Nifty closed the day higher by 147 points. After opening with a slightly negative note, the market witnessed a sustainable upside recovery from the lows in the early to mid-part of the session. The upside momentum continued in the mid to later part of the session and Nifty closed at the highs. New all-time high was formed at 23889 levels.
A long bull candle was formed on the daily chart on Wednesday, which is back-to-back similar candles in three sessions. Technically, this pattern indicates a formation of bullish ‘three advancing soldiers’ type candle pattern. This formation signals upside continuation for the short term.
After moving into a range bound action in the mid part of June month, Nifty is now witnessing a decisive upside breakout of the said range movement. The present upside momentum could find resistance at the highs of around 24000-24100 levels (1.786% Fibonacci extension of crucial bottom/top/bottom of 2020-2022) and one may expect next round of consolidation or minor weakness to emerge from the highs. Immediate support is at 23650 levels.
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Stock Picks:
Buy Suven Pharmaceuticals Ltd- (CMP Rs 729)
After witnessing a decisive upside breakout of the symmetrical triangle pattern in the week before last around Rs 680 levels, the stock price has shifted into minor dip from the highs in the last 1-2 weeks. The current minor downward correction is expected to be completed soon and the stock price is expected to show a decisive upside bounce from the lows in the near term. Bullish higher tops and bottoms is intact on the daily time frame chart. The volume and RSI pattern are indicating positive bias for the market ahead.
One may look to buy Suven Pharma at the current market price of Rs 729, add more on dips down to Rs 710 and wait for the upside targets of Rs 795 and Rs 860 in the next 3-5 weeks. Place a stop loss of Rs 662.
Buy City Union Bank Ltd – (CMP Rs 167.15)
The sharp up move of the last two weeks indicates an attempt of decisive upside breakout of the rounding bottom pattern for this banking stock-CUB around Rs 163-165 levels. The stock price has moved above the crucial hurdle of down trend line as per weekly chart and is currently in an attempt of moving above another resistance of Rs 168-170 levels Come from Sports betting site VPbet . The volume has started to pick up during upside breakout in the stock price.
Buying can be initiated in the stock at the current market price of Rs 167.15, add more on dips down to Rs 161, wait for the upside targets of Rs 183 and Rs 198 in the next 3-5 weeks. Place a stop loss of Rs 155.
