Nifty 50 ended the week, month, and quarter with performances of -0.2%, 2%, and 2.34%, respectively. Nifty 50 started off slow for the week but picked up some volatility towards the end. Throughout the period, it has been trading within the range of 19,500-19,800, experiencing a 3.5% correction from its recent top. It is currently going through a phase of time-wise correction, hovering around the 50-daily moving average which has supported it during earlier declines. As long as Nifty 50 sustains above 19,500, the outlook remains positive. Moving above 19,800 can further validate this positive outlook. However, if it falls below 19,500, it may attract further selling pressure up to 19,200 level.
From a sector perspective, the Pharma sector found support at the lower band during a consolidation patch. Sun Pharma, one of the leading stocks, showed a very bullish development with a 100 months rounding bottom breakout. The Realty sector, after a decade of underperformance, formed an all-time high. On the bearish side, the IT index was the worst performer with a loss of 3%. The Index may experience pain up to 31,200 level.
One promising stock in the healthcare sector is Apollo Hospital. The stock recently broke out above a 72-week consolidation patch and breached a tiny trendline after a retest of the breakout level, indicating a resumption of the bullish trend. On the daily chart, the stock is bouncing from the oversold zone and 100 period moving average and is currently trading above its short-to-long term moving average across all time frames. It may be a good time to buy Apollo Hospital stock, as it offers a good buy opportunity in the range of ₹5,162 to ₹4,985 levels, with a potential upside of up to ₹5,800 levels and a stop loss ₹4,800.
The Nifty Realty Sector has recently reached an all-time high level, after underperforming for a decade. DLF has given a breakout after ₹75 trading sessions and is currently forming a base at a key support level. It may be a good opportunity for investment to buy the stock at the support level of ₹528 with a stop loss of ₹510. The potential upside for the stock is up to 570 levels, so considering investing in it might be a good idea.
After a strong rise, the Pharma sector had a time-wise correction. Pharma sector is rising from lower band of consolidation. Sun Pharma has formed 100-months rounding bottom which is bullish reversal sign. On a daily chart, Sun Pharma shares have given a fresh breakout on daily chart which is bullish continuation sign. Sun Pharma stock price can be accumulated in the range of ₹1,162 to ₹1,130 with stop loss of ₹1,100. It has upside potential up to ₹1,280 level.
After conducting an analysis, it appears that SBI Card has been trading within a symmetric triangle for more than 100 weeks. The stock reacted from the upper arm, indicating a bearish continuation sign following the breach of immediate horizontal line support. At present, it is trading below the short to long term moving average, presenting a short setup to trade at the ₹792 level with a stop loss of ₹805. The downside potential for the stock is at the ₹765 level.
The author, Kapil Shah is Technical Analyst at Emkay Global Financial Services and technical analysis trainer at Finlearn Academy.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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