By Shrikant Chouhan
After two days of sharp value correction, on Tuesday, the benchmark indices witnessed a sharp pullback rally from 17350/58300 help level. Post intraday correction, the Nifty took the help at 17326/58232 and reversed sharply. The intraday rally was largely supported by the Metal, Oil, and Gas and selective monetary stocks. Whereas, regardless of powerful momentum, Auto stocks witnessed promoting stress. Technically, the texture of the sharp reversal formation close to 10 days SMA suggests a additional uptrend from the existing level. We are of the view that the brief term trend is nevertheless up but due to uncertain international situations the market place may perhaps favor to trade inside the variety of 17650-17450/59300-58500.
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For the day traders, as extended as the index is trading above 17450/58500 pullback rally is most likely to continue up to 17600-17650 -17680/59150-59300-59500. On the flip side, under 17430/58500 uptrend would be vulnerable.
Stocks to acquire
Manappuram Finance
Obtain, CMP: Rs 166.35, TARGET: Rs 175, SL: Rs 162
Post correction from the highs of about 205 the stock went into an accumulation phase, at some point, it has formed a bullish engulfing candlestick pattern with increasing volume close to help zone which suggests a fresh leg of uptrend in coming trading sessions.
Coal India
Obtain, CMP: Rs 156.4, TARGET: Rs 165, SL: Rs 152
The counter has shown a outstanding up move in current instances and right after hitting the higher of about 161 there is a pause in momentum, having said that at the moment, on intraday charts, it has reversed sharply from its double bottom help zone which indicates that the counter has prospective for a additional bullish up move from the existing levels.
Titan Company
Obtain, CMP: Rs 2085.85, TARGET: Rs 2190, SL: Rs 2040
Post sharp upward rally without the need of any significant correction some bit of a profit taking is seen in the counter which resulted in a value drop, nonetheless, a powerful reversal is incredibly most likely from the help of the retracement zone for additional upside in the close to term.
Reliance Industries Ltd (RIL)
Obtain, CMP: Rs 2404.7, TARGET: Rs 2520, SL: Rs 2350
On the every day time frame, right after the sharp up move, the stock was into a consolidation phase having said that at the moment, on intraday charts, it is trading in a triangle chart pattern which indicates that the counter has adequate upside prospective from the existing levels.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)