NEW DELHI: The market remained volatile on Wednesday, with Nifty50 falling below the 16,000 mark, before a smart recovery at the fag end of the session helped the index cut losses.
The pullback, despite the prevailing uncertainty, suggests Wednesday’s low of 15,992 would be critical support for the coming session, analysts said.
A breach of the same might ensure that the index is likely to retest the low of 15,700, said Mehul Kothari of Anand Rathi Shares & Stock Brokers, who added that a Nifty50 close above 16,318 could be a strong reversal confirmation since the index made a Hammer like bullish formation on the daily chart.
Below are key recommendations for Thursday:
The stock has corrected almost 15% from the top of 2,856 and entered an oversold zone in the lower degree charts. The stock is hovering above its 200 day moving average, which might act as a strong support for a bounce from the current levels.
Buy the stock above Rs 2,480 for a target of Rs 2,600 with a stop loss placed at Rs 2,480.
Analyst: Mehul Kothari, Anand Rathi Shares & Stock Brokers
The stock has been correcting for eight consecutive trading sessions and now it has formed a bullish Hammer candlestick pattern on the daily chart. A close above the hammer’s high would be a confirmation of a short term bottom and we could witness a pullback. Buy the stock above Rs 995 for a target of Rs 1,050 with a stop loss placed at Rs 965.
Analyst: Mehul Kothari, Anand Rathi Shares & Stock Brokers
The price has corrected by over 20 per cent in the recent past. However, the stock has moved up after consolidation on the daily chart. Momentum oscillator, daily RSI is coming out of the oversold zone as it has witnessed a hidden bullish divergence.
Over the short term, the stock may move up towards Rs 750 as long as it holds Rs 634.
Analyst: Rupak De,
Securities
The stock has formed a bullish engulfing pattern on the daily chart. A strong lower wick suggests decent buying at the lower levels. Positive divergence is visible on the daily RSI.
Over the short term, the stock may move up towards Rs 537 as long as it holds Rs 494.
Analyst: Rupak De, LKP Securities
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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