By Shrikant Chouhan
The Nifty 50 index is heading for the levels of 16000/16200 in the next handful of weeks and the downside is protected to 15400 levels. Also in the absence of assistance from the cyclical stocks, defensives are supplying considerable assistance to the marketplace, which is grossly positive for the marketplace. The AGM of the index giant Reliance Industries Ltd (RIL) is scheduled for the 24th of June that will maintain the traders and marketplace excited about the outcome. Also, handful of index heavyweights like ITC and Bharti Airtel delivered decent numbers but have not participated in the present run-up of the marketplace. If they commence participating then it is most likely that would send the marketplace beyond 16000 levels.
On Tuesday, the marketplace remained in a tight trading variety. It failed to surpass the heaviest level of 15800 but also survived above the level of 15670, which was the preceding day’s lowest level. Such a kind of formation brings main volatility to the marketplace. The defensives like Technology, Pharma and FMCG supplied considerable assistance, nevertheless, finance-associated stocks closed in the damaging territory. On Wednesday, under the level of 15670, Nifty would drop to 15620 or 15580 levels. On the greater side, Nifty would rally if it manages to surpass 15800 levels. Resistance would be 15800, 15880 and 15950 levels. The focus must be on Pharmaceuticals and Technology providers.
Technical stocks to invest in
Aurobindo Pharma
Get, CMP: Rs 972.1, TARGET: Rs 1,020, SL: Rs 950
On the day-to-day chart, immediately after hitting the all-time higher of 1063 the stock went into a gradual downtrend, nevertheless, for the previous handful of days the stock was hovering close to its 50 Days EMA and ultimately, it made a double bottom chart pattern and reversed from the assistance zone for a new leg of upward movement.
HDFC Life Insurance Company
Get, CMP: Rs 689.7, TARGET: Rs 725, SL: Rs 675
For the previous handful of weeks the stock was into an accumulation phase exactly where it was trading in a rectangle formation, as a outcome, a fantastic demand zone is developed about 660-670 region which will act as an powerful base for the counter. Recently the stock has offered a powerful breakout of the variety with incremental volume activity signaling for a bullish up move in the close to term.
Bharat Petroleum Corporation Ltd (BPCL)
Get, CMP: Rs 487.45, TARGET: Rs 510, SL: Rs 475
The stock is constantly trading in an ascending channel formation which clearly suggests bullish momentum is most likely to stay in the brief term. In addition, on the day-to-day charts, the stock has formed a greater bottom formation with a powerful bullish candlestick pattern indicating fantastic strength in the counter.
Infosys
Get, CMP: Rs 1,412.95, TARGET: Rs 1,490, SL: Rs 1,380
After the powerful uptrend rally from 1300 to 1390, the stock witnessed a narrow variety activity for handful of sessions and has formed a Cup and Handle chart pattern with the increasing volume and ultimately the stock broke out of the variety for moving additional upside forming bullish continuation pattern.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal)