By Shrikant Chouhan
After a sharp recovery in the last week, as soon as once again the benchmark index took resistance close to 15900/ 53200 resistance level. On an intraday time frame, a couple of occasions the marketplace attempted to sustain above 15880/ 53000 but due to constant promoting stress at greater levels it failed to cross 15900/ 53200 resistance mark which is broadly adverse for the index. The marketplace was down primarily due to constant and aggressive promoting from FIIs in the Asian markets.
On Tuesday, due to steep weakness in Dr Reddy’s Laboratories, we saw huge liquidation in other pharmaceutical providers. The Nifty Pharma index fell more than 4 per cent for the duration of the day, which is the largest intraday fall right after the month of December 2020. The Nifty Metal index closed in the positive territory for the 4th consecutive day. We are of the view that, the setup of the marketplace is variety bound and as we are approaching the assistance of the reduced boundary (15650/15600)/ 52100-52200, we have to have to be stock-particular. On the greater side, 15810/ 52700 and 15900/53000 would be resistance levels. Technically, the 20 day and 50 day SMAs would play an critical part in the close to future, we can anticipate a rapid pullback rally if the index succeeds to close above the very same. On the flip side 15600/ 52200 or 50 day SMA would be the important assistance levels for the bulls beneath the very same uptrend would be vulnerable.
Technical stocks to get
Hindalco Industries
Acquire, CMP: Rs 417.35, TARGET: Rs 440, SL: Rs 405
The stock has offered a breakout of its Ascending Triangle chart pattern along with a powerful bullish candlestick pattern and substantial volume on the everyday chart, in addition, all key technical trend indicators such as ADX and Stochastic are indicating strength for additional momentum to sustain.
Larsen & Toubro (L&T)
Acquire, CMP: Rs 1,605, TARGET: Rs 1,690, SL: Rs 1,570
After the sharp up move from the levels of 1500 with a huge volume, the stock is trading in a variety-bound movement effectively above its quick term moving averages as a outcome the formation of a Flag chart pattern on the everyday scale is formed which points to bullish movement to resume in the coming sessions.
HDFC Life Insurance Company
Acquire, CMP: Rs 669.7, TARGET: Rs 705, SL: Rs 655
For the previous couple of weeks, the counter is trading into a variety-bound territory and presently, it is readily available close to to its demand zone of 660 which could act as a powerful base for the stock simultaneously producing it a favorable candidate in terms of threat and reward as a result existing setup is signaling for a bullish up move in the close to term.
TECH Mahindra
Acquire, CMP: Rs 1,123.6, TARGET: Rs 1,180, SL: Rs 1,one hundred
On the month-to-month scale, the stock has presented a robust rally, post powerful breakout from the zone of 1100 the stock has taken a pause in the momentum inside a narrow variety having said that quick term texture is hunting appealing for bullish continuation formation in the close to term.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)