Benchmark Index Nifty50 shut shop marginally in the green on Thursday forming a higher low after two days of profit booking and lower lows. For the week, Nifty ended trade on an absolutely flat note. Further, the index has entered a sideways consolidation phase following its recent uptrend. Immediate hurdle on the upside is at 17,400-17,430 being cluster of recent highs and immediate support is at 17,260-17,200 levels. A sustained trade beyond the upper end of the range i.e. 17,400-17,430 will resume the uptrend taking the Index higher to levels of 17,550. However, failure to break out of the 17,430 resistance zone can trigger profit booking dragging the Index lower to levels of 17,260-17,200 being lower end of the range. Technical Indicator RSI on the daily time frame remains in an overbought territory suggesting that sideways consolidation phase could continue before breaking out of the hurdle at 17,430.
Equity recommendation: Prince Pipe
BUY | CMP @Rs 719
Target: Rs 770
Stop Loss: Rs 690
The stock has resumed uptrend after breaking out of a trendline resistance on good volumes. Technical indicator RSI has turned upwards after taking support at the 60-level suggesting strength in the stock.
BUY | @ CMP 755
Target: Rs 810
Stop Loss: Rs 727
The stock is on the verge of a breakout from a narrow consolidation phase following its recent up move. Further, strong volume build up in the run up before consolidation phase suggests that the breakout should follow. Technical indicator RSI crossing the 60-level is also suggesting a successful breakout is on cards going forward.