Bulls continued to have a strong hold at Dalal Street despite corrections in the middle of the last week.
The Nifty50 saw bullish candlestick pattern formation on the daily as well as weekly charts, but overall it has been in a broad range since hitting record highs of 18,600 levels on October 19.
“For the coming week, 18,200 – 18,350 is to be seen as a crucial range and till the time we do not surpass it convincingly, we are not completely out of the woods yet.
“The neckline support is around 17,700 – 17,600 which, if gets broken, we could see difficult days for the market in the short run.
Hence, he reiterated on avoiding aggressive longs and even if one wants to follow stock specific moves, needs to be very selective.
The last week’s move has strengthened the broader trend of the stock.
In the next few weeks, the stock should reach at least Rs 20,500, according to the current pattern and medium-term outlook.
On the daily and weekly charts, the stock is making a series of higher top bottom.
The stock has a strong bottoming formation between Rs 725 and Rs 690.
Based on that, we think the stock is fully prepared to reach its previous high of Rs 855.
The recent rise above the level of Rs 1,775 has been accompanied by above-average volumes, as also the fact that we have seen a positive movement in Call strikes on the higher side.
The level of breakout around Rs 1,775 has been retested in earlier correction twice.
We feel the uptrend has legs to take it to a pattern projection of Rs 2,000, with further opening of extensions to Rs 2,135.
We feel the uptrend has legs to take it to pattern projection of Rs 1,850, with further opening of extensions to Rs 1,886.
We feel the uptrend has legs to take it to pattern projection of Rs 1,500.
After this it never looked back as we could see it now surpassing the Rs 7,200 mark without giving any major correction all this while.
Since it has already moved up a bit, we recommend buying on a minor pullback towards Rs 7,200 – Rs 7,150 for a short-term target of Rs 7,500.
Primary trend of the stock is positive where it is trading above its all-important short term and medium-term moving averages.
Plus, DI is placed above the Minus DI while ADX line is placed above 25 and slopping upwards, indicating momentum in the current uptrend.
Stock price has broken out on the weekly chart to close at highest level since week ending 13-August 2021.