Nifty50 likely to trade in 11,600-11,900 till Union Budget

By Mehul KothariSenior Technical Analyst, Indianivesh SecuritiesNEW DELHI: There could be some consolidation going ahead, but the trend is likely to remain strong till the time 11,600 is not breached by the Nifty, according to technical analysts. Stocks like Tata Motors, Majesco, Canara Bank, HDFC Life, SBI, Bajaj Finserv and Info Edge are likely to move up as per the charts.Where are We? The expiry week remained marginally in favour of bulls since the benchmark indices ended the week with marginal gains. The Nifty spot recovered from the support of 11,600 to close near the 11,800 mark with a weekly gain of (+0.55 per cent). On the other hand, the Bank Nifty surged more than 1.5 per cent during the process.What is in Store? At this juncture, the Nifty has formed an intermediate swing high of 11,911. Also, the daily chart of Bank Nifty depicts a ‘Shooting Star’ candlestick pattern which is a reversal one and that too exactly at 78.6 per cent Fibonacci retracement level of the previous move. Thus, there could be some consolidation or profit booking going ahead. But the trend is likely to remain strong till the time 11,600 is not breached by the Nifty. On the downside, the index has a support at 11,700-11,600; while the upside hurdle is at 11,920. A move above 11,920 might pull the index towards its life high.What could Investors Do? On the stock front, we are bullish on Tata Motors for the coming weeks. After a relentless correction from Rs 239; the stock found support near the 150 mark which is the 78.6 per cent Fibonacci retracement levels of the previous rise. The stock has formed a bullish ‘Hammer’ formation at the retracement support. The weekly rising RSI indicates fresh upside going ahead. Thus, traders can accumulate the stock between Rs 162 and Rs 158 with a stop below Rs 150 for the upside target of Rs 170-180. With regards to trend line breakout, stocks like Majesco, Canara Bank and Voltas should be kept on the radar for buy on dips.

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