By Shrikant Chouhan
The present week commence was positive, post gap up opening Nifty 50/BSE Sensex swiftly surpassed the 15750/ 52600 resistance mark and rallied more than 190/ 400 points. In the day-to-day time frame, the index has formed a robust reversal formation and the texture of the pattern suggests an uptrend wave most likely to continue in the medium term. However, the industry is regularly taking resistance close to the 15900/53200 level and the intraday chart suggests, traders might take a caution stance close to the 15900/53200 level.
Technically, in the close to future, 15870/ 52900 really should be the important levels to watch out for, beneath the identical correction wave most likely to continue up to 15775-15720/ 52850-52500. On the flip side, if the industry succeeds to trade above 15870 /52900, we can count on the continuation of the uptrend wave till 15925-15965/ 53200-53400. Further upside might also continue which could lift the index up to 16050-16150/ 53500-53750. Sector-particular, the Bank Nifty and selective economic stocks most likely to outperform.
ICICI Bank
Obtain, CMP: Rs 650.3, TARGET: Rs 685, SL: Rs 635
Post robust rally from 530 to 660, the stock had witnessed a gradual down move nonetheless the counter is trading in a variety with decent volume activity and consistently taking help at the increasing trend line which suggests that the stock is into the accumulation stage therefore fresh breakout move is anticipated for a new leg of uptrend in the close to term.
Jindal Steel & Power
Obtain, CMP: Rs 391, TARGET: Rs 414, SL: Rs 380
After hitting the higher of 500 the counter witnessed a sharp value correction and it entered into consolidation mode for the last couple of sessions nonetheless presently on intraday charts, it is trading in a tight variety of the Symmetrical triangle chart pattern which indicates that the counter has sufficient possible for upside with favorable danger and reward situation from the present levels.
SBI Life Insurance Company
Obtain, CMP: Rs 1,023, TARGET: Rs 1,075, SL: Rs 1,001
A phenomenal up move in the counter is seen for the last numerous months and nonetheless it is in the bullish trend, the stock is constantly making the Higher High and Higher low series chart pattern, moreover current robust bullish candlestick formation indicates upward momentum to sustain in coming sessions.
Sun Pharmaceuticals
Obtain, CMP: Rs 673.25, TARGET: Rs 707, SL: Rs 660
For the previous couple of weeks, the stock is broadly trading in a 660 to 680 rectangular variety formation close to its critical retracement zone therefore a robust base has been shaped for the new leg of an uptrend for the counter, nonetheless, it appears that a robust up move is really most likely from the retracement location on the day-to-day chart for additional bullish movement.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)