Benchmark Index Nifty-50 concluded another session of trade marginally in the green amidst a rise in intraday volatility. For the week, the Index closed above the 17,800 mark, going up 1.52%. However, going ahead 17,920 will act as a key hurdle and a failure to take out this resistance zone of 17,900-17,920 may trigger profit booking dragging the Index lower to levels of 17,780-17,700. Moreover, a close below 17,700 may extend the profit booking dragging the Index lower to levels of 17,600.
However, a sustained trade above 17,920 in the coming week will extend the ongoing uptrend to levels of 18,080. Moreover, for the coming week, traders should watch out for a negative divergence building up in RSI w.r.t price and VIX which has scaled above the 16 level as these are signs of an intermediate top formation.
M&M | Buy at CMP of Rs 779
Target: Rs 820
Stop Loss: Rs 760
The stock is on the verge of a breakout from a narrow consolidation phase suggesting bullishness building up Further, prices are ginning up on good volumes. Technical indicator RSI has turned upwards after taking support at the 40 level suggesting strength in the stock.
Ambuja Cement Futures | Sell @CMP of Rs | Sell @CMP of Rs 412
Target: Rs 390
Stop Loss: Rs 425
The stock is on the verge of a breakdown from a trendline support suggesting weakness building up. Further, it has turned south from the previous resistance of Rs 425 and a bearish crossover between key shorter time frame moving averages confirming the bearishness. RSI is also heading in bear territory.
(The author, Aditya Agarwala is Senior Technical Analyst, YES Securities. The views are his own)