The Nifty has been trading in a very narrow range since testing the lower band of the rising channel pattern on a daily basis.
There has not been much progress on the daily chart this week compared to the previous week’s charts.
On August 12, both the Nifty and the Bank Nifty were down nearly one percent and then pushed the Nifty closer yesterday with consistent buying support in some heavyweight stocks.
Over the past four months, the benchmark index has been trading in a growing channel structure and during that period, prices have almost tripled the channel’s bottom band and successfully rallied high.
Over the past month, India VIX has been flat and is studying in the 26-23 level range.
On August 11, the India VIX index broke a small degree trend at the daily break and on August 12, it continued its breaking trend and fell 2.41 percent to close below 21 levels.
The market width is suitable for bulls. For five gains, three lost.
There are expectations that there will be a good announcement on the financial institution dedicated to taxes, health care, the announcement of the new FDI, and infrastructure funding.
We hope to find some relief at the current level with the time-wise correction.
The breakdown below 11,100 could trigger a further supply to 10,850. Resistance is near 11,375, a break of this level will open the gate for 10,600 on the benchmark index.
Bombay Burmah Trading Corporation (BBTC) | Buy | LTP: Rs 1,430 | Target
price: Rs 1,690 | Stop loss: Rs 1,280 | Upside: 18%
On the weekly chart, the stock gave a breakout of the consolidation pattern.
A bullish candle formed over the course of the week, which was higher than the previous week.
It surpassed the double top resistance kept at 1,390 odd levels. Along with the price breakout, volumes also increased.
This stock is kept above all significant moving averages, indicating a bullish trend. The majority of indicators and oscillators are showing a positive trend in the current scenario.