FSN  E  COMMERCE  VENTURES-BUY

Technical View

•  The pattern analysis on the daily timeframe shows that the price action crossed the threshold of stage 1 into stage 2 on the highest volume recorded during the quarter.
•  This validates a strong breakout and a cue of buyers yet holding strength.
•  The breakout candle created an imbalance amidst the weak sellers in-turn creating a fair value gap acting immediate support zone.
•  Following the pivotal shakeout near 177 levels, the price action retraced to the fair value  support and showed resilience to further drawdown yet another time upholding the mentioned support zone. This further indicates a base of accumulation before the uptrend potentially resumes.
•  This sequentially led to a relatively stronger pullback with tepid signs of momentum in the  previous trading session.
•  While the relative strength compared to Nifty shows improving relative performance, the 50 period volatility trails at lower levels. This minimizes the chances of any unruly move.
•  The daily and weekly RSI are trading well above their medians indicating thrust in the price  momentum.
•  All in all, Nykaa is trading 20% above from our previous recommendation and we anticipate further potential upside.
•  We reiterate a buy on Nykaa from CMP-176 for the target of 210 and stop loss at 166