By Shrikant Chouhan
Indian stocks tumbled on Tuesday right after a jump in treasury yields. Any oversupply in Treasury yields indicates a rise in commodity rates and international investors start off exiting from emerging markets with a view that adverse effects of the Federal Reserve’s tapering on the emerging markets. Below the 17800 level, the Nifty fell relentlessly. The Nifty touched the 17576 level through the day, which was unexpected. Bank Nifty touched the level of 37315. However, each indices recovered considerably in the last half hour of trading and closed at 17748 and 37945, respectively. Tuesday’s lowest level would be the quick-term trend-setting level and under that we would see additional declines.
From the 15500 level, 10-day SMA help served as the primary help level. On Tuesday, even although the industry has gone under the 10-day SMA help, the Nifty has managed to close above it. Before expiration, we need to focus on 10 days SMA and 20 days SMA. On Wednesday, if the industry falls under 20 days SMA, which is about 17500, we need to be a contra purchaser for a quick period. On the greater side of the view, there will be key resistance levels for the 17800 and 17850 Nifty. Till the industry is not crossing 17950, traders need to cut down weak extended positions at resistance levels. The Pharmaceutical stocks need to do effectively in the medium term.
Stocks to obtain
Sun Pharmaceutical Industries
Purchase, CMP: Rs 775.1, TARGET: Rs 815, SL: Rs 757
On the month-to-month scale, the stock has presented a robust rally, right after a breather of handful of trading sessions, it has taken a pause in the momentum inside a variety. Currently, the counter is trading close to the reduced boundary of the variety which indicates reversal from present levels.
Torrent Power
Purchase, CMP 503.25, TARGET 530, SL 491
The stock has presented an remarkable up move in the last a lot of months and it is trading in a Rising Channel constantly. The Higher High and Higher Low chart patterns are apparent in the counter. Therefore upward movement from the present level is quite probably to stay in the close to term.
Canara Bank
Purchase, CMP 163.7, TARGET 172, SL 159
On the weekly scale, the stock is trading in an Ascending Triangle chart formation and a breakout from the pattern is quite probably in the coming session for additional upward movement.
Britannia Industries
Purchase, CMP 4003.65, TARGET 4205, SL 3920
Post robust upward rally, the stock had witnessed a gradual down move and any minor correction is seen as a getting chance. The stock has located help in its demand zone, therefore we count on the increasing trend to persist from the present levels in the quick term
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s personal.)