The Bulls have maintained their winning streak for the third consecutive week, propelling the benchmark to new record highs. It has been an eventful week overall, marked by the Nifty pushing into uncharted territory and ultimately closing with weekly gains of 1.50 percent, just shy of the 26,200 zone.
In a market environment devoid of bearish activity and bolstered by positive global indicators, the benchmark continued to surge to record highs even with overstretched technical and derivative metrics. Moreover, the sectoral rotation has provided the essential impetus to drive the recent market activity. It’s been nearly 10 odd months, our markets have continued their gravity defying run; but looking at the Quarterly time frame chart, we came across an interesting observation and it
From March 2020 lows, NIFTY had formed a Bullish Flag pattern which consisted of a pole with six Quarterly candles. We have precisely reached the target (26,276) of this pattern with precisely six Quarterly candles. Although it has become difficult to predict when the market will give a much-needed healthy correction, such important development with extremely overbought conditions of all major technical indicators, staying light and avoiding aggressive positions seems to be a prudent ploy. On the levels front, the zone of 26,000 is anticipated to provide a cushion, followed by a series of support placed from 25,800-25,700 in the comparable period.
On the flip side, 26,250 – 26,300 remain to be immediate hurdles, and as we move forward, such levels can certainly be revised.
The broader participation from Midcap space and selective heavyweights is likely to stay in prime focus amidst the churning among sectors. Simultaneously, it is crucial to keep a close watch on the global markets, as any aberrations could potentially disrupt the ongoing momentum of our domestic markets.
NSE Scrip – Canara Bank
View – Bullish
Last Close – Rs 113.10
Canara Bank has showcased a strong resurgence from the pivotal support of 200 SMA on the daily time frame chart and has bounced to witness a sloping channel breakout. The price movement has been backed by a noticeable increase in trading volumes, construing a robust sentiment in the counter.
Going ahead, the breakout on the daily chart is likely to trigger bullish traction in the comparable period. From a technical perspective, the indicators have rebounded to witness a positive crossover, signalling a bullish trend in the stock.
Hence, we recommend to BUY Canara Bank around: Rs 110 | Stop Loss: Rs 104 | Target: Rs 122
NSE Scrip – Coal India
View – Bullish
Last Close – Rs 516.10
Coal India is in a stellar up move, hovering in a cycle of higher highs – higher lows on a broader time structure. In the recent session, the counter has resurged from the lower band of its rising channel, coinciding with the support of 100 DEMA to continue its primary trend.
Also, on the oscillator front, MACD signals a strong momentum, suggesting a potential upside journey into uncharted territory for the counter.
Hence, we recommend to BUY Coal India around: Rs 515-510 | Stop loss: Rs 486 | Target: Rs 574
(Osho Krishan is a senior analyst of technical & derivatives at Angel One Ltd. Views expressed are his own.)
First Published: Sep 30 2024 | 7:21 AM IST
