Stock Pick For Tuesday, January 11, 2022

  • Stock Market Analysis

In the previous session, the markets opened on a strong positive note and remained in positive territory throughout the day. The Nifty index made a day high near 18017 level and closed with a net profit of 190.60 points. Technically, Index formed a bullish candle on the chart but ended the day at a crucial resistance point 18000 level. Hence, traders should be focused on the ‘buy on dips’ strategy for the next trading day.

Indian Stock Market will open negative. Technically, the Indian Stock Market is still in a positive zone. The market is over-stretched now and some profit booking would be seen at this point of time. The market would enter into the negative zone only if it closes below 17745 for Nifty and 37482 for BankNifty .

Following stock looks good for swing trading and one can go long at below given levels.

Deepak Nitrite Ltd (NS: DPNT )

NSE: DEEPAKNTR   BSE: 506401  Sector: Chemicals

On the last trading day, the stock formed a strong bullish candle on the daily chart. We can see the ‘Inverted Head and shoulder Pattern’ has formed. This pattern is associated with a reversal of a downward trend in price. The right shoulder has been completed near 2400 levels. Stock is now quoting above the neckline of the pattern. A pullback can be expected near this neckline support. As per pattern theory, 400 points movement on the upside can be expected in the coming days.  Also, the Stock comfortably closed above the 50 EMA support which confirms the bullish trend.

In short, the trend for DEEPAKNTR looks to be positive now. A throwback can be expected near 2400 levels. Use dips as a buying opportunity for a move towards 2800 levels as long as we do not see any closing below 2180 levels.

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