Positive on this one despite choppy market

Published Noember 02, 2018

Nifty 50 (NIFTY.NS) Close: 10380.00

Nifty 50 (NIFTY) moved more or less horizontally on Thursday and closed at 10380 points (-0.06 per cent).

988 shares were up and 507 were down, while 57 remained unchanged, and there was no trading in 250 shares.

The total value of the trading volume for shares and primary capital certificates Thursday was approximately 367.0 billion.

It tried hard but could not manage to close above 10400 points. This level is something to look out for, if the index manages to close above it and sustain. Until then no direction is clear and our outlook on Nifty 50 index would be Watch, as long as 10000 level holds.

Escorts Limited (ESCORTS.NS) Close: 674.45

In early September, Escorts Limited broke through the floor of a rising trend channel in the medium term and gave a sell signal from the head and shoulders formation. The stock fell more than 32 per cent from its peak in May.

On Thursday, Esscorts' share prices rose on high volume to trigger a buy signal. Sellers were challenged and beaten as the stock price broke out from a double bottom formation and closing above its resistance of 650 rupees.

Last candle, as shown in the candlestick chart, also closed with a gap from its previous candle. This is adding weightage to the positivity of the Escort Limited share price.

Positive volume balance shows that volume is higher on days with rising prices than days with falling prices. Rising momentum, as indicated by the upward moving RSI curve, indicates increasing optimism among investors.

Next level of resistance is at 800 rupees, which is 18 percent higher than its previous close. There is support around 650 and 560 rupees respectively.

The stock is overall assessed as technically positive for the medium term.
Investtech's outlook (one to six months): Positive

The analyses are based on closing price as per November 01, 2018. Maintaining proper stop loss is always recommended.