Nifty trades on the 52 week trendline: Emkay

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Techcheck Daily

Nifty trades on the 52 week trendline

n     Chart of the Day: Nifty, trading at 52 week trendline supports @5790, extremely crucial sessions ahead, we expect the trendline to hold though some whipsawing can be witnessed, an ensuing bounce would now be tempered.

n     Two sector indices namely Banking and Capital Goods are at bullish channel supports and should be the saving grace

n     The larger universe like BSE 500 though might struggle, 52 week trendline supports are broken, expect underperformance from hereon

n     Nifty monthly mean reversion setups emerge target 5030, medium term targets hence stand revised from 6340-6500 to 6150-6450

n     Bearish alternates; Sensex two year cycles and quarterly cycles come back to haunt

n     Stocks with positive short term view:

n     Maruti, ICICI Bank, SBI, L&T, Infosys

n     Stocks with negative short term view:

n     Tisco, Hindalco