By Shrikant Chouhan

Indian stock market place closed at the lowest point of the day on Tuesday. The market place is not stabilizing at any particular level, which is an indication of some more uncertainties in the close to term. The Nifty/Sensex closed under the level of 14500/48300 that would retain open the possibilities of hitting 14400/14370 (48000/47900) levels, on the other hand, it is critical for the market place to close above the levels of 14450/48100 to preserve the upward bias. On the greater side, 14600/48500 and 14750/48900 would be the key obstacles. Today, despite the fact that there was some profit-taking seen in the PSU stocks on Tuesday, we really feel they can very easily attract adhere to up shopping for in the next couple of sessions.

ONGC
Invest in, CMP: Rs 109.65, TARGET: Rs 116, SL: Rs 106

On the month-to-month chart, it is observed that post its drop from the highs of 180 the stock went into a correction phase, on the other hand, the stock reversed following forming the powerful base at its demand zone and began trading in an upward channel. Additionally present variety breakout with incremental volume activity on the everyday chart indicates the stock has very good possible for additional upside.

Canara Bank
Invest in, CMP: Rs 141.35, TARGET: Rs 150, SL: Rs 136

For the last two months, the stock has been in a downward channel following hitting the double top rated chart pattern at about 172, and thereafter it discovered assistance at its prior lows and reversed sharply by forming a hammer candlestick pattern. Moreover the current formation of the Cup and Handle chart pattern on the everyday time frame with increasing volumes indicates bullish movement in the close to term is extremely probably to persist.

Nestle India
Invest in, CMP: Rs 16,546.6, TARGET: Rs 17,400, SL: Rs 16,200

For the last handful of days the stock was trading in a reduce top rated and reduce bottom series chart formation and at some point the downward move took a pause at the increasing trend line and it appears that the bulls got into action, additional the technical oscillator stochastic indicates trend reversal as it is signaling the oversold situation of the counter.

Cummins India
Invest in, CMP: Rs 845.3, TARGET: Rs 890, SL: Rs 825

Strong reversal formation is evident from the many assistance region of 820, inverted hammer candlestick formation followed by star pattern on the weekly scale hints at bullish momentum in the counter incoming horizon.

(Shrikant Chouhan is Executive Vice President (Equity Technical Research), Kotak Securities. Views expressed are the author’s personal.)


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