By Shrikant Chouhan
The benchmark indices witnessed a spectacular rally rallying more than 200/600 points and hit a fresh all-time higher of 17153.50/57982.47. On Tuesday, post muted opening the marketplace hovering in the variety of 16915/55676 to 16995/57150. But in the afternoon the Nifty effectively clear 17000/57200 psychological mark and just after that intraday breakout, it rallied more than 150/600 points. Among sectors, Consumption, Metal and IT witnessed acquiring interest whereas, some promoting stress was seen in Media and selective Auto stocks. Technically, post-breakout the marketplace continues the bullish continuation formation which is broadly positive.
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But in the last 3 trading sessions, the Nifty rallied more than 580/2300 points, and due to an overstretched rally, the day traders could take a caution stance close to the 17200/58200 resistance level. We are of the view that, as medium term trend is nevertheless into the positive side and probably to continue in the close to future. Hence the best approach for day traders would be to obtain on dips and sell on rallies. 16980/57100 would be a sacrosanct help level for the swing traders, above the exact same uptrend momentum probably to continue up to 17200/58200 additional upside could also continue which could lift the index up to 17275/58450. On the flip side, a sturdy possibility of one swift intraday correction up to 16900/56800 is not ruled out if the index succeeds to trade beneath the 16980/57100 help level.
Technical stocks to obtain
Tech Mahindra
Invest in, CMP: Rs 1,447.65, TARGET: Rs 1,520, SL: Rs 1,414
The stock had presented a outstanding up move with the bullish continuation chart patterns constantly, just after a breather of handful of trading sessions the counter is prepared for additional upward movement from the existing levels.
Grasim Industries
Invest in, CMP: Rs 1,500.4, TARGET: Rs 1,575, SL: Rs 1,470
Post formation of the double bottom chart pattern, the reversal is evident in the counter with increasing volume activity on the everyday chart, on top of that, the stock has offered a breakout of the sloping trend line which validates reversal of the trend for additional up move.
Bharat Forge
Invest in, CMP: Rs 767.2, TARGET: Rs 805, SL: Rs 750
The counter has formed a drop base and rally structure from its demand zone with the rising volume additionally, close above the quick term moving averages on the everyday chart are suggesting a bullish trend in the coming horizon.
Tata Chemicals
Invest in, CMP: Rs 844.65, TARGET: Rs 888, SL: Rs 825
Post current correction from the highs of about 890 the stock went into a consolidation phase, sooner or later, it has formed a rounding bottom chart formation with increasing volume and retreated from the reduce levels for a fresh leg of uptrend in coming trading sessions.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal. Please seek the advice of your economic advisor just before investing.)