By Shrikant Chouhan
After a powerful uptrend rally from 14885 to 15660, the benchmark indices witnessed a narrow variety activity close to an all-time higher level. However, the bigger texture of the industry is nonetheless on the bullish side and most likely to continue in the close to term. Among sectors, the move of the Nifty IT Index is encouraging and we recommend accumulating technologies stocks for this month. The Nifty 50/ Sensex 30 Index has closed under 15600/52000 which indicates day traders might take a cautious stance close to all-time higher level, and if the index manages to trade under 15600 then the Nifty might go to the levels of 15510/51750 to 15450/51500. On the flip side, for the industry the instant hurdle would be 15700/52300, trading above the similar we can count on the continuation of the uptrend wave up 15770/52500 or 15850/52800 levels.
Stocks in focus this week
Adani Ports and Special Economic Zone
Purchase, CMP: Rs 798.5, TARGET: Rs 840, SL: Rs 780
Past couple of weeks Adaniports was trading in a tight variety with a larger low series formation, meanwhile, on the every day scale, the stock has offered a breakout of the Ascending Channel chart pattern with incremental volume activity which indicates the starting of a new up move in the counter.
Sun Pharmaceutical Industries
Purchase, CMP: Rs 671.15, TARGET: Rs 705, SL: Rs 655
The stock had been in a phenomenal uptrend from the lows of 550 forming a bullish continuation chart patterns, presently due to some profit booking a short-term pause in the momentum is seen nonetheless it appears that a powerful reversal is extremely most likely from the retracement zone on the every day chart for additional upward movement.
HCL Technologies
Purchase, CMP: Rs 951, TARGET: Rs 999, SL: Rs 930
There is a great base which is formed about 900 which will act as a powerful assistance region for the counter, on top of that, right after the reversal, the stock is in a gradual up move and trading in a increasing channel effectively above its brief-term moving averages, therefore we count on bullish momentum to sustain in the close to future.
Asian Paints
SELL, CMP: Rs 2,924.95, TARGET: Rs 2,780, SL: Rs 2,980
The stock has made an all-time higher of 2989 and it appears that the bulls are losing the pace for additional upside movement as seen on intraday charts exactly where right after the consolidation the stock came on the downside by breaking its brief-term moving averages indicating additional bearishness.
(Shrikant Chouhan is Executive Vice President (Equity Technical Research), Kotak Securities. Views expressed are the author’s personal.)