â€œNifty is likely to get into a consolidation in the price band of 10,250 to 10,320 before next leg of up-move. Trade with positive bias.â€� says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
The Nifty previous Friday ended 0.06Â percent up at 10,331.60. It continued oscillating in the price band of 10,290 to 10,350 for the entire session towards ending the last day of the week with a spinning top candle. Spinning top on daily chart implies indecision among traders and investors.
Also, traders are skeptical of the meaningful direction in the market. Hence, Nifty getting into consolidation in the price band of 10,250 to 10,320 before next leg of up-move towards 10,370 and 10,420 is likely. Daily chart pattern along with position of leading indicators suggests, Nifty may again see aggressive buying on dips around 10,250 and 10,220. Traders and investors are advised to follow buy-on-dips strategy at this juncture.
On the Nifty hourly chart; candle pattern on the hourly chart suggest, down side crucial supports placed around 10,250 and 10,220 might be retested once again. However, buying on dips may again gain steam and take the Benchmark Index towards higher resistances.
Nifty patterns on multiple time frames show; a successful Falling-Wedge breakout, a bullish reversal pattern, has become fully operative. Hence, dips towards critical supports might be considered as the buying opportunities. Downside supports are placed around 10,250 and 10,220.
The Bank Nifty previous session ended 0.46Â percent up at 24,873.15. It is likely to move upward towards 24,950 and 25,050. Downside pivotal support is placed around 24,640.
The stock previous session ended with a consolidation breakout above Rs 525 levels. Finishing off previous session with a big Marubozu candle coupled with rising RSI while +DI â€“DI bullish crossover is already been done.
Based on the above mentioned observations,Â the house has recommended Havells as a buy on dips for the short-term upside target of Rs 547.