By Shrikant Chouhan
On Tuesday, the marketplace did considerably superior than expectations. It was one of the exceptional or one of a kind sorts of day for the marketplace as, in spite of the rise in the lengthy term bond yields from 1.65 to 1.75 and jump in the dollar index from 92.75 to 93.25, we saw an abnormal rally in the marketplace. It was at 14500 final Friday and on Tuesday it closed above 14800 levels. The formation of a Bullish Harami, that the Nifty has produced on the final Friday served as a highly effective reversal formation for the marketplace. In the preceding session, all sectors, except Bank Nifty and Auto, performed properly. If we correlate the information of the previous couple of years then in the final couple of days of the economic year ending, we witness such form of broad-based activity in the marketplace.
On a weekly chart, the marketplace has managed to regain the levels of 14750, which is positive in the brief term that would assistance the marketplace to move beyond 14900 levels and as per the wave theory, a month-to-month closing above 14930 levels would assistance the marketplace to rechallenge the levels of 15450, which is all-time highest level.
In short, on Wednesday, a closing of the Nifty above the level of 14930 would be positive for the marketplace. On Tuesday, the method should really be to obtain if Nifty drops among 14750/14700 levels and for that we want to preserve a quit loss at 14600. On Wednesday, we would see a rally in bank stocks, primarily mainly because the Bank Nifty closed above the level of 33700. Bank Nifty can go up to 34500/34700 above the levels of 33700. If the Bank Nifty performs, the Nifty could move closer to 14900 and 15050 levels. On the other side, Nifty / Sensex would discover important help at 14750 and 14600 levels.
Technical stock picks are-
Sun Pharmaceutical Industries Ltd
Obtain, CMP: Rs 597.7, TARGET: Rs 630, SL: Rs 585
The stock had been in a bullish trend forming larger lows on a weekly scale, on the other hand, the current cost drop from the highs of 650 appears more than as the stock took various help at the increasing brief-term trend line. On the each day time frame following decent accumulation, we witnessed a variety breakout and closing of above 20 DAY EMA hints at a bullish uptrend.
BPCL (Bharat Petroleum Corporation Ltd)
Obtain, CMP: Rs 430.8, TARGET: Rs 455, SL: Rs 420
On the weekly scale, the 480 zone acted as the sturdy resistance location due to double best formation which resulted in the minor correction in stock from larger levels building of a sloping bearish channel. Nevertheless, a reversal from an critical help zone on the each day chart is evident for fresh up move.
HDFC Bank
Obtain, CMP: Rs 1,553.7, TARGET: Rs 1,630, SL: Rs 1,520
Past couple of weeks the stock was into a correction mode and in the final week, it closed close to its critical Fibonacci retracement point, and simultaneously 20 days EMA acted as a help for the stock. On the complete, a sturdy bullish candle with the incremental volume activity indicates a new leg of a increasing trend from present levels.
HCL Technologies
Obtain, CMP: Rs 995.8, TARGET: Rs 1,050, SL: Rs 970
On a broader time frame, it is observed that the stock is trading into a rectangle pattern, even so, a breakout of a triangle formation with a sturdy bullish candle is evident on the each day chart with decent volume action, which specifies excellent strength in momentum in the close to term.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)