INSUBCONTINENT EXCLUSIVE:
By Vishal B Malkan Founder, MalkansviewThere is a possibility of broader sideways movement for the Nifty between 11,900 and 11,550 levels
over the next 3-4 weeks, before showing any decisive breakout on either side, according to technical analysts
Wipro, HCL Tech and Tech Mahindra look promising for upsides of 15-20 per cent from their current levels, from a mediumterm perspective,
they said.
Where are We Nifty had been hovering just below its all-time high levels of 11,800
But this week witnessed it retreating strongly from this level down up to a low of 11,570
This move clearly overpowers the long-standing efforts of the bulls to cross the all-time high
The index did make an attempt to move above the high of the bullish candle pattern formed on April 24, but failed to sustain there thus
forming a bearish shooting star pattern
This move caused a bearish range shift in RSI on the daily charts, which suggests the formation of an intermediate top
Bank Nifty followed suit with bearish patterns on daily weekly charts
29,500 level stands as an important support for this Index.
What is in Store The recent low of 11,550 is an important level to watch out for
The break of this level will confirm the three indecisive candle patterns on weekly charts
This opens the room for a further downside of 300 points
The bank index too could witness a slide of another 1,000 points, upon breaking the low of 29,500 levels.
What could an Investor Do One
could avoid taking fresh long positions until we see a decisive move above these resistance levels
On the sectoral front, majority of the stocks from the IT sector are trading at their all-time high levels
Wipro, HCL Tech and Tech Mahindra look promising for an upside of 15-20 per cent from their current levels, from a medium-term perspective
These can be traded on the short side for a 7-10 per cent decline.