By Shrikant Chouhan
The weekly opening of the Nifty / Sensex was positive, the benchmark index Nifty/ Sensex opened at 15915.65/ 53126.73 but due to lack of comply with-via shopping for it fell to 15800/52700 levels. Among sectors, the Metal stocks continue the positive momentum and powerful shopping for was in PSU Banks when intraday profit booking was in HDFC Life Insurance Company and selective IT stocks.
On Tuesday, the market place remained in a narrow variety but with a adverse bias. Weakness in the Asian markets, constant promoting stress from FIIs given that the last 3 days and steadiness in the costs of Brent crude at 75 could be the couple of factors to preserve the market place inside the trading variety. The market place failed at 15900/52900 levels, which is upward boundary for the market place and weakness from the exact same could outcome in gradual weakness towards 15670/52300 that is the reduced boundary of the trading variety and coincidently 20 days EMA is also placed at the exact same levels that really should act as reversal point for the market place. We witnessed weakness in Financials, Metals and Auto providers, which is an indication that shopping for breadth is poor. The activity was more into FMCG and Pharmaceutical stocks. We need to have to be a purchaser involving 15720/52450 and 15670/52300 levels. Keep a final quit loss at 15600/52100 levels.
The market place has spent nearly two weeks under the 15902 levels, nonetheless, if this level is broken, the Nifty would have to move to the 16050/16150 (53750) level. According to solutions statistics and retracement levels, the Nifty / Sensex would obtain assistance at 15800/52800 and 15670/52300 levels. If Nifty/Sensex derail under 15670/52300 and they could fall to 15550/51800 or 15450/51500 levels. Our approach really should be to minimize the position involving the levels of 16050/16150 (53750).
LTI (Larsen & Toubro Infotech)
Purchase, CMP: Rs 4,134.15, TARGET: Rs 4,350, SL: Rs 4,050
Post formation of double bottom chart pattern about 3550 zone LTI showed a exceptional uptrend till 4200, soon after this powerful rally it is witnessing a variety-bound activity for the last couple of sessions and has formed a Cup and Handle chart pattern with the decent volume as a result the breakout of the variety for moving additional upside is extremely most likely to take place in the close to term.
CIPLA
Purchase, CMP: Rs 979.6, TARGET: Rs 1,030, SL: Rs 960
The stock has presented a robust rally for the last quite a few months and nevertheless it is in the upward path, the stock is consistently forming the Higher High and Higher low series pattern in addition current price tag volume breakout indicates bullish momentum to sustain in coming days.
Housing Development Finance Corporation (HDFC)
Purchase, CMP: Rs 2,501.2, TARGET: Rs 2,630, SL: Rs 2,450
For the previous couple of sessions, the counter is trading in a narrow variety with incremental volume activity close to its assistance zone which suggests that the stock is into the accumulation phase nonetheless not too long ago the formation of a Hammer candlestick pattern is seen in the counter which indicates powerful reversal in the coming horizon.
MPHASIS
Purchase, CMP: Rs 2,086.15, TARGET: Rs 2,190, SL: Rs 2,040
After hitting the all-time higher of 2133 the counter has witnessed a variety bound activity for a couple of sessions nonetheless existing variety breakout with incremental volume along with the formation of powerful bullish candlestick pattern indicates that the counter has adequate possible for additional upside from existing levels.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)