NIFTY
Last: 5099.85, up
56.85 points
On the last trading day, NIFTY rose 56.85 points to close
the day at 5099.85. Major positive contribution came from TATASTEEL, TATAMOTORS
and HDFCBANK while major losers were PNB and SBIN.
Despite the rise, NIFTY maintains negative trend on short
and long term basis. The moving average setup is indicating that the Index will
enter into an uptrend only after crossing 5200 level on the closing basis. Till
that time we advice investors to maintain a sell on rise stance.
AMBUJACEM is showing overbought reading on the
Trend Score table. The stock has risen 9% in one week and 28% in eight weeks.
We believe time is ripe for swing traders to book gains as the stock is likely
to enter into a sideways range to consolidate gains.
As shown on the Trend Score table, KOTAKBANK,
PNB, SAIL, SBIN and WIPRO are in the oversold territory as the 14 day RSI is
showing readings below 30. Among all the stocks mentioned above, we like
KOTAKBANK as the stock is showing a positive Trend Score while rest of the
stocks are in the sell mode. See charts below.
Dead cat bounce is likely in PNB, SAIL, SBIN and
WIPRO while KOTAKBANK, after showing some sideways action around current
levels, will resume its dominant uptrend. Swing traders are advised to
gradually accumulate all these stocks on the weakness with a view to book
profits on the rise.
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