In the previous session, the Nifty Index closed with a net loss of 88.50 points. It’s been the 3rd day in a row when we have seen selling pressure in the index. The index prices have been constantly forming bearish candles and moving in lower highs and lower lows formation. In the last session, the Nifty index saw a positive opening in the morning but soon slipped to the lowest point. However in the last trading hour we have seen some recovery in the Nifty Index. At the same time BANK NIFTY index recovered sharply from its low point and closed with a strong bullish candle on the chart. The market has been showing sector and stock specific movement since the past few days. Hence, we recommend continuing to approach the markets in the same way.

Look at the below research report of ‘Stocks to Buy for – Friday, October 22, 2021’before the market opens.

Shriram Transport Finance Company Ltd

NSE :SRTRANSFIN   BSE :511218  Sector : Finance

Shriram Transport finance Stock prices have formed a strong positive candle on the weekly chart. At the same time stock has given a breakout above a Symmetrical Triangle pattern. Since price has taken strong support of 50 EMA which suggests positive bias for the short term. ‘Buy on Dips’ will be the preferred strategy for the stock.

In the daily time frame, share prices are moving in the form of ‘Inverted Head and Shoulder’ pattern. As shown on the chart, prices have given a breakout above the neckline after the right shoulder has completed near 1400 levels. As per pattern theory, 240 points movement on upside can be expected in coming days.  As shown on the chart stock comfortably closed above the middle band of Bollinger Band indicator which indicates short term bullishness.

As the chart looks attractive, one can initiate buy at current levels and add more on dips around support levels near 1420-1425 levels which can take price towards 1640 levels. This outlook is valid as long as we do not see any closing below the neckline of the pattern near 1400 levels.

Check More Analysis on SRTRANSFIN at: Shriram Transport Finance Company Ltd