Adani Ports among 4 sell ideas from Axis Securities this week

economictimes.indiatimes.com:

Adani Ports, UPL, Aarti Industries and Ambuja Cement are four stocks on which Rajesh Palviya, SVP — Technical & Derivatives Research, Axis Securities, recommends a sell. “Adani Ports demonstrates a bearish sentiment as it recently breached the medium-term upward-sloping trendline. It is currently trading below critical moving averages (20, 50, and 200-day SMA), accompanied by a persistently lower daily RSI relative to its reference lines,” he says.

Edited excerpts from a chat:Nifty has now been scaling new peaks every other day. Are the charts giving overbought signs?Since March '23, Nifty has displayed a remarkable «V» Shape recovery, surpassing its previous swing high of 18888 on a weekly closing basis. This impressive rally has been primarily driven by sectors such as Auto, Banking, Pharma, Capital goods, Consumer Durables, FMCG, and Healthcare, indicating strength across a wide range of sectors.

In the current weekly price action, the benchmark index has formed a small bullish candle with a long upper shadow, suggesting some higher-level profit booking. This pattern bears a resemblance to the «Shooting Star», which is a short-term trend reversal pattern. However, this pattern's validation would require a weekly follow-up close below 19230.

In such a scenario, a short-term profit booking towards 19000-18900 levels cannot be ruled out. Despite this short-term profit booking, the broader picture reveals that the medium to long-term trend remains bullish. Hence, any minor price corrections should be seen as a buying opportunity for traders.