By Shrikant Chouhan
FMCG and technologies stocks saved the market place on Tuesday, otherwise, the Nifty/Sensex would have reached 14,800/50000 once more due to weakness in bank stocks and metal providers. The worldwide market place was steady and extended-term bond yields have been also trading in the brief-variety. We think that the markets would stay on the sidelines till the FOMC meeting is completed (Results will come Thursday morning) in the US. Keep an eye on the 14750/49800 and 15100/51000 variety. Long positions really should be purchased amongst the levels of 14750/14800 (49800/50000) with a quit loss of 14700/49600 in the close to future. We are probably to see trending activity right after the FOMC meeting. The concentrate really should be on FMCG and Infrastructure connected stocks.
Technical stock picks are:
Britannia Industries
Get, CMP: Rs: 3,489, TARGET: Rs 3,660, SL: Rs 3,420
After the robust rally from assistance zone of 3320 till 3500 the stock took a pause in momentum activity and at present on the each day time frame the stock has formed a cup and manage chart formation along with choose up in volume activity close to its 20 day EMA which indicates uptrend move in close to term.
NCC Ltd
Get, CMP: Rs 87.6, TARGET: Rs 93, SL: Rs 84
The stock has presented a bullish continuation chart formation from the final handful of weeks and at present right after the up move it is into a sideways movement forming a flag pattern on each day time frame. Positive parabolic SAR series and modest volume activity close to critical assistance level recommend robust possibility of fresh uptrend from existing levels.
Manappuram Finance
Get, CMP: Rs 163.9, TARGET: Rs 173, SL: Rs 159
The stock has corrected about 15% from the levels of 185 to 158 and at present the stock has been hovering in its demand zone which has emerged as a superior base for the stock. Formation of harami candlestick pattern close to critical assistance region indicates a bullish reversal.
Hindalco Industries
Get, CMP: Rs 333.9, TARGET: Rs 350, SL: Rs 325
After the robust rally from 200 to 350 levels, the stock went into a corrective pattern having said that a hammer candlestick formation has occurred close to its 20 day EMA. For the positional traders 330 really should be the essential level to watch trading above the very same with decent volume action we anticipate uptrend to resume in coming sessions.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)