Nifty Outlook:
Nifty did display some resilience & witnessed a bounce after facing relentless selling from 11,500 zone. The market breadth has not been that comforting while the volatility index continued to scale higher. On the pattern front, the index did witness a Harami formation on Tuesday session but the confirmation of the same is yet awaited in terms of an affirmative close. Hence, any non-sustenance above 10970 could unlock fresh pessimism & push the index towards its 200 DEMA placed around 10,780. As the broader trend looks weak pullback towards 11,170 zone should be used to create fresh shorts with a Stop above 11,310.
Stock: United Spirits
Reco.: BUY
CMP: Rs 533
Since May 2018 the stock has been declining within the bounds of a channel pattern. The wave formation within the pattern also resembles a Bullish Three Drives Harmonic structure. The support near 520 looks strong & a Bullish Harami formation confirms the same. Positional longs could be deployed with a stop below 505 & a move back to 600 could be witnessed in the coming month.
Stock: TVS Motor Company
Reco.: SELL
CMP: Rs 584
Rising wedge on the daily scale with the stock facing resistance near its 200 DEMA around 595. Shorts could be initiated below 575 with a Stop above 596 for a pattern target up to 545.
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