Nifty Can Move Downside If Fails to Sustain Above 12000 levels: CapitalAim

Mr. Romesh Tiwari, Head of Research, CapitalAim

On Tuesday market, Benchmark Nifty50 opened on a positive note and consolidated upward to test the levels of 12000 on the daily chart but did not sustain above these levels and corrected from there. The index has not been able to sustain above 12000 levels and now RSI is looking weak on daily charts and placed at 59.08 levels. MACD on the same chart has converged downwards. For the rest of this week, if it fails to sustain above 12000 levels then downside movements can be initiated. For the rest of the week, cement, banking, and IT sectors are expected to remain bullish.

This week, in the Indian market, on Wednesday, June 12 there would be data of CPI (YoY) (May) and WPI Inflation (YoY) (May) would be on Friday, June 14, 2019. On the international front, CPI and Core CPI on Wednesday & on Friday, there would be data on Core Retail Sales and Retail Sales.

Stock Recommendations:

ICICI Bank: BUY| Above: Rs 424| Target: Rs 440| Stop loss: Rs 407|

ICICI Bank is moving upward after testing support around 411 levels on the daily charts and sustaining above the trend line drawn from the high of 28-May-2019. The rate cut by RBI and expected liquidity infusion by the government will help the bull run in the Banking sector.

Ultra Tech Cement: BUY| Above: Rs 4650| Target: Rs 4790| Stop loss: Rs 4510|

Ultra Tech Cement is overall in a bullish trend and sustaining above the support of trend line drawn from low of 19-Feb-2019 on daily chart. Also, it is sustaining above 35-day moving average. Cement sector is expected to perform better in the medium term.

NIITTech: BUY | Above: Rs 1351 | Target: Rs 1392 | Stop loss: Rs 1310|

NIITTech is in a bullish trend since 10-May-2019 and sustaining around higher levels on the daily chart. RSI is looking strong on the daily chart, now placed at 67.73 levels. MACD is showing buy signal on the same charts.

Source : Equity Bulls

Keywords