The week ended April 5 favoured the bulls, but the Nifty traded within a range of 22,300 to 22,600 points, though it managed to end the week with a gain of 0.84 percent. It, however, failed to close above its previous all-time high of 22,526.60, which raises concerns for the current week.
The Nifty is trading above the S3 Camarilla pivot (22,346), and it found support at this level in the previous trading session. Additionally, since the Nifty is trading significantly above its 21-day and 50-day exponential moving averages (DEMA), there is a possibility of reversion towards the next support levels of 22,340 and 22,200.
Overall, the levels to watch out for on the higher side would be 22,600 – 22,800 and lower side 22,200–22,000.
The Nifty Bank index emerged as a notable performer in the past week, gaining almost 1,368 points and closing with a substantial increase of 2.90 percent for the week.
Looking ahead, the level of 48,636 poses an immediate resistance as it represents the previous high reached in December 2023. Coincidentally, the 48,600 mark aligns with R5 Camarilla resistance, which could prompt some investors to book profits, potentially leading to a pullback in the Nifty Bank index towards its immediate support levels of 48,000 and 47,500.
Orient Cement: Buy | LTP: Rs 217 | Stop-Loss: Rs 195 | Target: Rs 250 | Return: 15 percent
Following a peak near the Rs 293 level, Orient Cement encountered a notable downturn, marked by a sharp decline of 35 percent in its overall value. Despite this downturn, Orient Cement has shown signs of stability around Rs 200 level for the week, establishing a sustained support base.
It’s noteworthy that Rs 190-200 level coincides with Fibonacci ratio clustering, as indicated in the chart. Moreover, during this period, a 1:1 leg has also formed around this support zone, further reinforcing a bullish sentiment in the stock.
Analysis of the daily scale RSI (relative strength index) indicator reveals a bullish hidden divergence, suggesting a favourable outlook for Orient Cement.
Taking into account these factors along with chart patterns, investors may find it prudent to consider initiating buy positions within the range of Rs 210-220, with an upside objective targeted at Rs 250. To manage risk effectively, it’s advisable to set a stop-loss order at Rs 195 on a daily closing basis, providing protection against potential downside movements.
Hindustan Unilever: Buy | LTP: Rs 2,266.95 | Stop-Loss: Rs 2,145 | Target: Rs 2,500 | Return: 10 percent
Since reaching its peak around Rs 2,669 mark on January 1, 2024, Hindustan Unilever has experienced a notable downturn, witnessing a significant decline of 16 percent. However, in the subsequent six trading sessions, Hindustan Unilever has displayed resilience, avoiding further declines and instead consolidating within a range spanning from Rs 2,230 to Rs 2,280.
Notably, within this price range, a bullish AB=CD pattern has formed on the daily chart of Hindustan Unilever. This range also corresponds with the 0.50 percent retracement level of a price swing observed between March 2022 and July 2023, as depicted on the chart.
Additionally, on a daily scale, the relative strength index (RSI) has exhibited a complex structure (W shape) along with some regular bull divergence on the 4-hour chart. Interestingly, the mentioned range of Rs 2,230-2,280 aligns with S3 weekly Camarilla Pivot, suggesting a potentially attractive buying opportunity.
Therefore, it might be prudent to consider buying within the range of Rs 2,250-2,280, aiming for an upside target of Rs 2,500, while setting a stop-loss near Rs 2,145 on a daily closing basis.
AU Small Finance Bank: Buy | LTP: Rs 634.75 | Stop-Loss: Rs 585 | Target: Rs 725 | Return: 14 percent
AU Small Finance Bank reached a peak around Rs 813 on January 9, 2024, but then experienced a decline of about 32 percent. However, in the past two weeks, the stock has shown a significant recovery and is currently trading near Rs 620 mark, indicating a bullish sentiment.
On the indicator side, the weekly Scale Stochastics indicator has identified a “hidden Bull Divergence” close to its previous low point recorded on March 20, 2023 (as shown on the chart). This divergence suggests the possibility of upward momentum and indicates a potential bullish sentiment.
Therefore, investors may consider adding long positions in the range of Rs 620-640, with an upside target set at Rs 725. It’s recommended to set a stop-loss near Rs 585 on a daily closing basis to manage risk.
Source: MoneyControl