Agencies, August 1 . Nifty made a spinning top as indecisiveness and volatility leave market abreast in a range after making a new all-time high of 11390. A spinning top is an indecisive pattern with larger wicks as compared to a small body.
The color of the candle does matter as it is usually seen at end of large moves. Though, given the secular bullish run, we may see some minor corrections with similar patterns as previously observed.
RBI kept the momentum as we believed to be with another rate hike while it now remained neutral for FY19. The growth forecast of GDP remains well within the range of its 7.5% while inflation is now seen at around 4.6%.
This is positive in the medium term as the RBI is focused on containing the inflation keeping growth in sight. Markets have given a thumbs up to previous rate hike done by RBI and seen positive momentum while we expect this rate hike to be similar as boost the sentiment in near term. Since prices are seen in the stretch on north we suggest utilizing the dips towards 11200 – 1250.
ASHOKLEY – After two week of consolidation stock has shown some strength with good volumes today and closed near to days high. It has also given closing above the resistance level on daily chart. We recommend buying from the current level for the target of 125 with the stop loss of 114.
UBL – Stock is consolidating for a week with average volumes and closed in green. It also gave closing above the 200 EMA & SMA on the daily chart. We recommend buying from the current level for the target of 1150 with the stop loss of 1090.
MINDTREE – Stock has given a good reversal on daily chart followed by a heavy green candle. The RSI also took the support of oversold zone on the daily chart and moved upward. The stock performed well today with good volumes. We recommend buying from the current level for the target of 980 with the stop loss of 934.