Mehta Equities’ stocks recommendation of the day

financialexpress.com:

By Riyank Arora

On Tuesday, the benchmark indices faced an immediate resistance at the 19,200 mark. The Nifty ended  61 points lower while the Sensex was down by 238 points. Among Sectors, almost all the major sectoral indices witnessed good buying interest at lower levels. Technically, post a gap up opening the market faced good resistance at the 19,200 mark. Going forward, we can expect the market to be volatile with the short term trend being on the negative side – as we continue to trade below the 19,350 mark. We are of the view that, as long as the index is trading below 19,350 the downtrend formation is likely to continue. However if the index manages to go above the same, the rally could extend towards 19,500 and 19,800. On the other side, as long as we continue to trade below this 19,350 mark – the downside can likely continue to extend towards 18,800 and 18,500 levels.

The stock has given a significant breakout above recent highs of around 821.00. A strong increase in volume indicates momentum building in the counter. Therefore, the structure suggests good momentum and a rally in the upcoming trading sessions.

The stock has reached a crucial support level of approximately 3314.00. Additionally, the stock is forming an “M Reversal” pattern on both daily and weekly charts. As the stock fails to maintain levels below 3314.00, there is a high likelihood of a significant short-covering move for Siemens India.

The stock has broken through a significant resistance level around 1450.00. Furthermore, the stock is exhibiting a “W Pattern” breakout on daily charts. A strong technical structure and a sharp increase in volumes are positive indicators for the stock, suggesting a strong rally in the upcoming trading sessions.