Nifty fell sharply on Monday & Tuesday to bounce back sharply and retrace 75% of its fall. The top formation were hanging man candle stick while the bounce has come from hammer candle stick. Indicating range bound markets. Derivative data suggest 5400 as very strong support, while resistance comes in at 5510/5530. For the week nifty may move within this narrow range. Sustaining below 5420 will trigger profit booking while sustaining above 5530 will lead to heavy short covering and a new high. Large cap banks and IT stocks look weak while mid caps are still showing signs of a rise. For the week, trade within the range and on breakouts with strict stop loss.
Support for the week comes in at 5380/5280/5215.
Resistance for the week comes in at 5545/ 5610 / 5710
Stock Picks for the week.
NHPC (31.10)
In daily charts after a pullback and consolidation the stock is showing signs of a rally. Buy for a target of 32.75 with a stop loss of 30.45.
In daily charts its moving in a channel and is now trading above all its key moving averages. Buy for a target of 172 with a stop loss of 161.50
In daily charts after making a H&S bearish pattern it currently on a throwback. Sell for a target of 5750 with a stop loss of 6230.
ICICI BANK (1001)
In daily charts after completing its 1st move down, it has done its throwback on market support and is now showing signs of weakness. Sell for a target of 970 with a stop loss of 1022.
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