Here is why you should buy Aditya Birla Fashion, Max Financial, & sell Asian Paints in short term
Hot Stocks | Nifty50 on March 2 witnessed a gap down opening tracking global peers and continued to trade in a negative terrain without disturbing its previous day’s low. Prices closed 1% lower, but within the previous day’s range, forming an inside day pattern on the daily scale.
On the daily chart, prices broke through the horizontal trend line support at 16,800, confirming a consolidation break. Prices have likely finished a pullback near the trend line resistance at 16,700–16,800 levels.
SOURCE : IPOINFO
India’s bourses have also closed above the PRZ and produced a bullish ABCD Harmonic Pattern (potential reversal zone). Buying every downturn by DIIs suggests support from Indian institutions at lower levels, according to FII & DII findings this week.
Currently, the Nifty has support at 16,400 & 16,200, & a breach below these levels will lead to 15,800 in next weeks. The upper band is cap near 17,100 & once the gap gets fill then the range might extend till 17,400 levels.
Here are two buy calls and one sell recommendation for next 2–3 weeks:
Asian Paints: Sell | LTP: Rs 3,029 | Stop-Loss: Rs 3,100 | Target: Rs 2,909 | Return: 4 percent
Asian Paints has developed a neckline support at Rs 3,100 levels in the recent four months. On March 2, prices broke a Head & Shoulder pattern’s neckline and gave a negative breakdown in the counter.
Prices are sustaining below all its important exponential moving averages on the daily interval. The previous three times, prices bounced back from the neckline support at ₹3,100, but on March 2, prices forcedly closed below the support.
Majority of the indicators and oscillators are indicating a negative range shift in the prices. Counter has also witnessed an above average volume during breakdown indicates a price volume breakdown.
Max Financial Services: Buy | LTP: Rs. 853.5 | Stop-Loss: Rs 815 | Target: Rs 918 | Return: 7.5 percent
Since the second week of January, prices have been trading in a lower low lower high pattern, with a daily falling wedge pattern.
Max Financial developed a bullish Engulfing candlestick pattern on the weekly scale after a falling trend line breakout on the upper side.
The RSI (14) has established a bullish divergence and has recovered from oversold levels, indicating a significant price recovery.
Aditya Birla Fashion & Retail: Buy | LTP: Rs 272.80 | Stop-Loss: Rs 260 | Target: Rs 295 | Return: 8 percent
ABFRL has created a bullish three white soldier candlestick pattern on the daily interval. Prices broke out of a falling wedge formation and closed above the previous day’s high.
On a weekly basis, prices have form a bullish Engulfing candlestick pattern, which will be confirm if prices close above the candle’s high. The counter is firmly finding the support near its 50-week exponential moving average.
Oscillators are still below 50 but have managed to reconnect, indicating a gain in momentum in the coming trading session.
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