Bull horns and Bear ears: Dalmia Bharat, Coforge and Bajaj Finance in focus
midcap, and smallcap have shown strength, while Oil and Gas, Auto, and FMCG have shown weakness. After analyzing the recent performance of the stock, it appears to have reached the lower arm of a rising channel following a decline. This is interesting because it coincides with a horizontal support line and moving average that has acted as support in the past.
A bullish candle formation at the support level suggests that buyers are present at this level. Based on this information, the stock looks promising with potential for upside to the 2150 level. It's important to note that the bullish view will be negated if the stock falls below the 1920 level.
Based on my analysis of the IT industry, it appears that mid and small cap stocks are performing better than large cap stocks. It has been noticed that Coforge has recently broken out of a 70 week consolidation period and is currently receiving support from the short-term moving average. This suggests that the bulls are showing strength.
Based on Technical formation, Coforge looks like a promising stock right now at 4885, with a suggested stop loss of 4685. We believe that this stock has the potential to rise up to 5200. In comparison to the broader index, financial stocks seem to be lacking strength.
Bajaj Finance is currently at the upper band of almost a 100-week consolidation patch. However, it is important to note that the stock has formed an M-shaped pattern on the line chart, which is generally considered to be a bearish reversal sign. This bearish reversal sign holds more significance when the stock is at resistance.
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