By Shrikant Chouhan
In this week, post muted opening the market place is hovering in the variety of 16500-16580. However, the medium-term texture of the market place is bullish. On Tuesday, the market place remained weak in the initial half of the trading session. But in the late afternoon, after once more bulls took the charge, and due to powerful obtaining interest markets cleared intraday resistance of 16590 and succeeded to close above the very same which is broadly positive. Now we can see worth obtaining in economic, cement, and capital goods businesses.
On Wednesday, against the backdrop of the weekly expiration of index alternatives, the Nifty would locate resistance in between the 16650 and 16700 levels. On the other hand, 16500 and 16450 would serve as a main assistance level for the quick term. The Bank Nifty has seen a bullish reversal immediately after moving to the reduced limit of the trading zone in between 35600 and 36300. Based on that, the Bank Nifty really should move towards the 36300 levels.
Technical stocks to watch
Larsen & Toubro (L&T)
Invest in, CMP: Rs 1,638.75, TARGET: Rs 1,720, SL: Rs 1,600
On a broader time frame, the stock has formed Higher Top and Higher Bottom series chart pattern which has resulted in powerful uptrend, nevertheless, the current price tag drop from its all-time higher zone is retesting of the breakout area and its retracement zone therefore the pullback rally is anticipated for additional up move in coming sessions.
ICICI Bank
Invest in, CMP: Rs 701.2, TARGET: Rs 735, SL: Rs 685
After hitting the higher of 717 the counter witnessed a pause in momentum and it entered into a consolidation phase for the last handful of sessions, nevertheless presently, on intraday charts, it is trading in a Symmetrical triangle chart pattern which indicates that the counter has enough upside prospective from the present levels.
Cipla
Invest in, CMP: Rs 904.65, TARGET: Rs 950, SL: Rs 885
On the day-to-day chart, the stock has reversed sharply from its double bottom assistance zone with a powerful bullish candlestick formation, the increasing volume activity close to assistance location indicates a powerful trend reversal from the present levels for bullish up move in the close to term.
Ambuja Cements
Invest in, CMP: Rs 401.5, TARGET: Rs 420, SL: Rs 393
Post correction from its all-time higher of 427 the counter is trading in a narrow variety with decent volume activity close to its many assistance zone which suggests that the stock is acquiring bullish interest at the reduced levels additionally the formation of a Hammer candlestick pattern also hints for powerful reversal in the coming horizon.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)