Outlook of Nifty and Stock Picks for Mint Live

Technical Observation: Nifty

The market continued to show upmove amidst choppy trend on Thursday and is currently trading higher by 80 points. We observe a descending triangle type formation on daily chart and this is not a good sign for bulls to sustain the highs. Consistent lower top formation over the last few sessions as per daily chart indicates that the present upside could find strong hurdle around 25600-25650 levels in the short term. Immediate support is placed around 25400-25350.

Stock Picks

Buy AUROPHARMA @ 1243, Target 1305, Stoploss 1205, Timeframe 1 week.

The stock price was moving in a larger consolidation pattern over the last few months. Present sharp upmove is expected to break above the consolidation resistance around Rs 1260 levels soon. Volume has started to expand during upside breakout in the stock price and daily RSI shows positive indication.

Buy NMDC @ 82.90, Target 88, Stoploss 80, Timeframe 1 week.

After a sharp weakness in the mid part of Feb, the metal stock price has bounced back smartly from the range bound action this week. The bearish downside gap of 13th Feb has been filled partially. Volume pattern and bullish RSI indicates more upside in the near term.