The benchmark index showed further correction initially in the first two trading sessions and made a low at 15,578.55. Post-that, a bull came into action, and further recovery in the index was witnessed. It recovered more than 250 points from the weekly low and settled at 15,850.40 levels on the Friday session while Bank Nifty ended the week at 35,034.40 levels.
Sectoral indices like Nifty Auto, PSU Bank and Media were the top weekly laggards, whereas Nifty IT and FMCG were the prime gainers on a weekly basis. Despite that volatile momentum, a few stocks like Bharti Airtel, Ultra Cements, Wipro, and Asian Paints were the weekly gainers. IndusInd Bank, HDFC Bank and Tata Motors were the top laggards for a week.
On the options front, the maximum call OI has witnessed 16,000 strike price followed by 15,900; while on the put side, the maximum OI is at around 15,800 followed by 15,700 strike price. Technically, the Nifty index has been consolidating in a bullish trend with higher highs and higher lows formation, which indicates bullish movement in the counter. Moreover, the Index has given closing above 21DMA & 50 DMA, which further adds strength for the coming session.
A stochastic indicator witnessed a positive crossover on the daily time frame, which supports the bullish trend. At present, the Nifty is finding resistance at 15,965 levels, crossing above the same can show 16100-16,200 levels in the index, while immediate support comes at 15,700 levels.
Top winners
WIPRO
On the daily chart, Wipro has been rising continuously in a bullish channel with Higher Highs and Higher Lows formation from the last couple of days. In addition, the price is trading above 20 Exponential Moving Averages, which supports the upward trend. Moreover, the increasing volume has been noticed in the last few trading sessions, which point to a positive trend for the long term. Furthermore, an oscillator Stochastic RSI suggested positive crossover, which is again an upside confirmation. However, on an hourly time frame, the price has faced an immediate hurdle of upper Bollinger Band formation, which indicates some correction in the counter.
ASIAN PAINTS
On the daily time frame, Asian Paints has given a breakout of the Bullish flag pattern and again reclaim the upper band of the pattern, which indicates immediate support & bullish set-up in the counter. In addition, the trend indicator Parabolic SAR is also supporting a bullish trend. Moreover, on an hourly time frame, it has formed a Bullish Flag pattern which supports the upward trend. Furthermore, the price may take immediate support of 50% Fibonacci Retracement level, which indicates a bullish reversal in the counter for the near term.
NESTLE INDIA
Nestle has given a weekly breakout of Falling Trend Line and formed strong Bullish Marubozu candle on weekly charts. The stock has settled above the convergence lines as well as above the bullish clouds of the Ichimoku Indicator, which indicates a further upside move. The Momentum Indicator is strongly pointing straight in the upward direction, which indicates a strong journey for the stock towards the north. The stochastic has also given a positive crossover which indicate the stock upward further movement. The stock has its closest support at 17500 while having resistance at its lifetime high of 18400 levels. Clubbing the above perspective, the stock seems to be very strong for the short term.
BPCL
On a daily chart, the stock has given a breakout of falling trendline which suggest upside rally in upcoming sessions, The stock has confirmed the bullish engulfing candlestick pattern which points out northward direction in the counter. Moreover, the prices have been trading above 200 & 1000 Days SMA, which supports the bullish trend. A momentum indicator RSI & MACD suggested a bullish presence for the near term. So based on the above structure, we are expecting more upside in the upcoming sessions. At present, the stock has support at 445 while resistance at 480 levels.
BAJAJFINSRV
On a daily chart , the stock has formed strong bullish candle on a weekly chart and made life time high at 13243.50 levels which suggest buyers are active. Furthermore, the stock has been trading above all the moving averages which points out strength in the counter. The stock has closed above the super trend indicator, which indicates a strong trend on the upside. The Parabolic SAR dots have formed under the candles, which indicates a further bullish view for the stock. The RSI has closed in the overbuying zone indicating a strong demand for the stock. The stock has a support at 12300 levels while resistance lies at the lifetime high at 13250 levels. Overall, the stock has very strong momentum for further upwards move.
Top losers
CIPLA
The stock has slipped almost 3 percent during the week from the prior highs and settled at 948 levels. On the daily chart, the stock is forming a Double Top pattern, which may confirm its breakdown below 945. Hence, we can expect further correction below the breakdown point. Moreover, the stock has shifted below 50-days SMA, which indicates a downward move for the near term. A momentum indicator RSI (14) & Stochastic suggested negative crossover on the daily time frame, which points out the weakness in the counter. On the downside, there is a support at around 900 levels while upside resistance comes at 997 levels.
HINDALCO
Hindalco has shown some profit booking during the week and closed at 391.85 levels with 3.3 percent of weekly losses. In the prior session, the stock has formed a bearish Marubozu candlestick pattern, which indicates further downside. Moreover, the stock has also traded below Upper Bollinger Band formation. In addition, a momentum indicator RSI (14) & Stochastic showed negative crossover. However, the prices are still trading above Ichimoku Cloud formation, which suggests a limited downside move. An indicator Parabolic Sar is also showing further strength. Parabolic Sar. So based on the above technical structure, we are expecting a buy-on dips strategy in Hindalco for the upcoming sessions.
TATAMOTORS
Tata Motors has formed a Tri-Star bearish pattern on the daily chart and has closed negatively since the past many trading sessions and has consistently been weak after its chip news. The 14-day RSI has entered in a phase of overselling, indicating selling in multiple trading sessions, which is also confirmed by the volume indicator. The stock has settled below the super trend indicator, which indicates a further fall for the stock. The price has shifted below the Parabolic SAR indicator that suggests weakness in the counter. On the downside, the stock may find support at around 285 levels while resistance comes at 320/330.
HDFCBANK
HDFC Bank closed at 1443 level down by 0.39 percent from its previous close. The stock has settled below the 15 days Moving Average, which indicates a bearish view for the near term. The convergence lines of the stochastic have negatively crossed below the divergence line in the overselling zone indicating a further correction for the stock. The stock might fall to take support of the 100 days SMA where the stock shall be bought using the Buy on Dips strategy nearly between the range of 1410/1400 levels for an upside target of 1480/1500 levels.
INDUSIND BANK
IndusInd Bank has settled at 985.50 losing 6.65 points and down by 0.67 percent on the Friday trading session. The stock has closed below the Pivot point, which indicates weakness on the counter. The Money Flow Index is pointing towards the downside indicating southwards drive for the stock in upcoming trading sessions. Momentum Indicator MACD is also showing negative crossover, which suggests weakness. The stock has a support of 950 levels while resistance at 1040 levels. Overall, the stock looks weak for near-trade sessions.
(Sumeet Bagadia is Executive Director, Choice Broking)
