Key benchmark indices opened on positive note and extended the gain for the fourth consecutive day tracking gains in banks, capital goods and oil & gas majors. Market sentiments was boosted by easing in WPI inflation at 5.19%. Although CPI inflation was increased to 7.96% and IIP was seen lower at 3.4% in the month of July. Nifty August Future ended the week on 7800.
Overall trend of the Nifty August Future is still bullish, last week it displayed positive move after crossing of all the previous resistance marks, In near term; market may trade with positive sentiments only. It may register new highs with the crossing of its resistance level of 7840, while support for Nifty future lies at 7660 and 7560.
Stocks to watch:
Cadila Healthcare Buy
The major trend of the stock is bullish and it is accumulating with the positive bias below its resistance level of 1128, Crossing of the resistance level can result in upside movement in the stock till the level of 1166 as the stock is sustaining above its 50 and 200 days moving averages with the RSI of 55. Support is at 1090 which will act as stop loss for the stock.
The major trend of the stock is bullish. Currently stock is trading below the falling trend line on the daily charts and sustaining below the resistance mark of 1490. Stock is also sustaining above 50 and 200 days moving averages. Traders can initiate long position above its resistance mark and get targets of 1550 and 1600 in the stock, while the technical stop loss is at 1430.
Vivek Gupta – Director Research, CapitalVia Global Research Limited