According to Rupak De, Senior Technical Analyst at LKP Securities, positive market sentiment is driving selective high-conviction breakout opportunities. Aegis Vopak is recommended at ₹257.45 with a stop loss at ₹247 and target of ₹273. The stock has given a consolidation breakout on the daily timeframe and moved above its 200-day moving average, confirming a positive trend. Lodha is suggested at ₹1,057 with stop loss at ₹1,017 and target of ₹1,125. The stock has given an ascending triangle breakout on the daily chart and moved above its 200-day moving average. Aurobindo Pharma is recommended at ₹1,620 with stop loss at ₹1,570 and target of ₹1,700. The stock has given a swing high breakout on the weekly chart and sustained above its critical moving averages.
The Nifty has gained over the last four weeks, rising from 23,070 to 24,378, which is a little less than 6%. According to LKP Securities, the index has given a consolidation breakout on the daily chart, suggesting an improved bullish sentiment. The Nifty is eyeing higher levels, with the RSI in a bullish crossover on both the daily as well as the weekly chart. An immediate resistance is placed at 24,400, where the 50-week EMA lies. A sustained move above 24,400 might trigger a more impulsive rally in the market, while a fall below 24,000 might cast doubt on the recent rise.
The Nifty IT index hit fresh multi-year lows in the week but displayed signs of bottom-fishing in the previous two days. As reported by LKP Securities, the last two trading sessions have been spectacular for Indian IT stocks, leading to a sharp recovery. The index has formed a hammer pattern on the weekly chart, which is a bullish reversal pattern. The daily RSI has entered a positive crossover, and the RSI is showing a positive divergence on the daily timeframe. An immediate resistance is placed at 28,000, with a decisive move above 28,000 potentially taking the index towards 30,000.
The PSU Bank Index has slipped below a critical moving average, with a hidden negative divergence suggesting a negative shift in momentum. According to LKP Securities, a decisive fall below 8,400 might trigger a deeper correction in the space. However, a quick recovery above 8,500 could provide the required momentum for the index, with a sustained move above 8,500 potentially leading to a significant rally.
GE Vernova, Hitachi and Siemens Energy fell on Friday amid negative news flow around Chinese firms being allowed in India in the power equipment sector. These stocks have witnessed channel or consolidation breakdown and fallen below their critical short-term moving averages. LKP Securities recommends staying away from these stocks until the dust settles and they show signs of a fresh uptrend.
