The Nifty closed down on each of the three trading days this week, which was cut short by Good Friday. At the conclusion of the day, the index was at 17,475. On weekly charts, the index dipped below the Doji candle bottom from the previous week but managed to stay above the 20-week Simple Moving Average (SMA).
On the daily charts, the Nifty has finished barely below the 20-week SMA, below which the index has support at 17,400. The resistance levels at 17,600 and 17,790 are on the upper side.
On a daily and weekly basis, the Relative Strength Index (RSI) is staying around the 50 mark and sends neutral indications.
The index’s mid-term trend remains favorable till it maintains a level of over 17,000 points. However, we expect the index to trade around the 17,300-18,000 region in the near future.
Thermax has been in a logical upward trend, with higher highs and lower lows. The stock recently found support around its 20-day SMA (Rs 2,009) and broke out of a three-month consolidation on strong volume. The RSI indicator has also gone above the 60 levels, indicating that the breakthrough has been confirmed. Analysts predict the stock to outperform and rise higher towards Rs 2,400, then Rs 2,550, with a stop-loss of Rs 2,050 recommended for this trade.
IIFL Finance, since March 2020, has been on a solid upward trend. With high volume building, the stock is currently breaking out of an 8-month lengthy consolidation. The stock developed an Optimistic Marubozu candle with a breakout this week, indicating the bullish sentiment in the counter, and the RSI indicator confirmed the bullish outlook. Analysts anticipate the stock would rise to Rs 410, then Rs 440, and advise traders to have a strict stop-loss of Rs 330 on a daily closing basis.
Godfrey Phillips, on long-term charts, found support at the rising trendline and surged to a 4-month high. On the daily charts, the stock has broken out of an Inverse Head and Shoulder pattern with good volumes, signaling strength in the breakout. On the weekly charts, the stock has created a lengthy bullish Marubozu candle and has broken and maintained above the 20-week SMA (Rs 1,118).