By Shrikant Chouhan
After a muted last week’s price tag action, this week’s opening was positive but post powerful opening as soon as once again the Nifty 50 / BSE Sensex took resistance close to 15780/ 52700 and corrected sharply. Despite sharp intraday fall indices one more time held 15630/52220 assistance level and reversed sharply. In contrast to Monday’s trade, today the market place sustained soon after the initial round of profit-taking and immediately reversed back to 15800/52700 levels, which is broadly positive for the benchmark indices. Purely beneath the leadership of financials, the market place has managed to close above the levels of 15800/52700.
Technically, it is a bullish continuation formation and with the assistance of it, the Nifty/Sensex would once again hit the tall wall of 15900/15930 (53000/53100). On a each day basis, 10 and 20 days SMAs supplied sacrosanct assistance to the quick-term trend that would act as the final cease loss for holding any extended positions. On Wednesday 15900/15930 (53000/53100) would be main hurdles and assistance would be at 15730/52500 and 15700/52400 levels. Buying on dips would be the best approach for the trades. Sector-certain, uptrend continuation texture probably to continue in the Banking and Metal stocks.
Technical stocks to get
Housing Development Finance Corporation (HDFC)
Acquire, CMP: Rs 2,544.9, TARGET: Rs 2,670, SL: Rs 2,490
Post formation of the double bottom chart pattern, a powerful recovery is seen in the counter with incremental volume activity on the each day chart, furthermore, the stock has offered a breakout of the provide trend line which endorses reversal of the trend for additional up move.
Lupin
Acquire, CMP: Rs 1,165.1, TARGET: Rs 1,220, SL: Rs 1,140
Post correction from the highs of about 1250 the stock went into an accumulation phase, ultimately, it has formed a rounding bottom chart formation with increasing volume and retreated from the reduce levels for a fresh leg of uptrend in coming trading sessions.
Mahindra & Mahindra (M&M)
Acquire, CMP: Rs 781.15, TARGET: Rs 820, SL: Rs 765
On the month-to-month scale, the stock has presented a robust rally and presently the counter is trading in a variety forming the Symmetrical triangle chart pattern. However, the current price tag action indicates a powerful breakout is pretty probably in the coming time horizon.
Axis Bank
Acquire, CMP: Rs 770.75, TARGET: Rs 810, SL: Rs 755
The stock is into a gradual up move with larger higher and larger low chart formation on the each day chart. However, on a broader time frame, the breakout from the Inverse Head and Shoulder chart pattern is evident which indicates a powerful bullish movement to persist in the close to term.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)