Buy Nifty on dips towards 10,700, Colgate can offer up to 5% return in short-term

Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management said the upside resistance for the Bank Nifty has placed around 25,750 levels and downside pivotal support at around 25,340 levels.

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The Nifty ended Monday 0.44 percent higher at 10,739.35. A positive opening followed by sustained trading above the critical resistance of 10,700 led to the market ending the session with another bullish body candle. The index continues its uninterrupted uptrend, making higher highs and higher lows on the daily chart. This indicates that the uptrend is likely to challenge critical resistance placed around 10,780 and 10,820 levels.

On the Nifty hourly chart, the average directional index (ADX) is trending higher and recovered above twenty despite The Relative Strength Index (RSI) showing a negative divergence. This implies that the uptrend is likely to continue further. Hence, an intraday dip towards 10,700 might be a decent opportunity to re-accumulate for the next leg of the move towards 10,780 and 10,820 levels.

 The Nifty patterns on multiple timeframes show that it ended the session with a bullish body candle above its 61.8 percent Fibonacci retracement placed around 10,700 levels of the entire correction from its all-time high to its recent low around 9,950 levels. Hence, the next leg of the move towards 10,780 and 10,820 is likely. 10,700 may now act as critical support.

Bank Nifty in the previous session ended 0.54 percent higher at 25,531.60. Its upside resistance is placed around 25,750 and the downside pivotal support is placed around 25,340 levels.

Based on a thorough technical study, the research firm recommends Colgate Palmolive which can offer up to five percent return in the short-term.

Colgate Palmolive | Rating: Buy | Target: Rs 1175, stop loss: Rs 1085, Return: 5%

The stock ended the session with a consolidation breakout above Rs 1115 levels. A bullish candle on daily chart supported by rising positive interest makes the bull case even stronger.

Based on above-mentioned observations, the house recommends Colgate Palmolive as a buy for the short-term upside target of Rs 1175.

Disclaimer:-The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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