We have mentioned earlier that it is high time for nifty to take any direction and after one day Nifty has taken the bull trend and it is nearing our weekly target of 5780.
Today's trading strategy is very simple. Pick front line stocks, buy above yesterday"s high and book profit according to your risk comfort levels.
Important level for nifty is 5733, trading above this level will not be a problem for bull rally.
Supports are – 5720 / 5701 / 5670
Resistances are – 5766 / 5785 / 5800
Bank Nifty Future (Refer Chart - Bank Nifty)
Bullish engulfing formed in bank nifty, so breaking yesterday's high will definitely add more strength for bulls. Important level for bank nifty is 11470. If it manages to hold above this level, then it may go till 11600 levels.
Supports are – 11450 / 11425 / 11380
Resistances are – 11525 / 11570
Stock to watch (Refer Chart - Bombay Dyeing)
Bombay Dyeing future is range bound between Rs 360 and Rs 370 levels for last four days and closed near last fourth day"s high. A positive MACD and since yesterday's close was also positive, these two factors together has made this stock look attractive for buy.
You can buy this stock above Rs 372 with stop loss at Rs 367 for a target of Rs 387. (This value will achieve in 2-3 days)
Bombay Dyeing future (you can check the price of the company in cash segment here)
Buy above Rs 371
Stop loss at Rs 368
Target price of Rs 377
Rajesh V. Ravanappan is a practitioner of technical analysis. He has eight years of experience in the share broking industry. He is a contributing writer for www.www.goodreturns.in
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