By Shrikant Chouhan
The benchmark indices opened with a gap due to exceptional strength in the international cues, the market place has managed to surpass the level of 17400 but due to lack of stick to-by way of getting it trimmed all intraday gains and sooner or later closed close to to the day’s lowest level which is broadly unfavorable. Among sectors, powerful getting interest was seen in Media stocks, as a outcome, Nifty Media index registered an exceptional rally of more than 14 %.
Technically, on intraday charts, the Nifty 50 index has formed a triple top rated sort of formation. We are of the view that the market place is nonetheless trading inside the trading variety and for the bulls, 17450/58500 would be the variety breakout level. Above the very same breakout formation is probably to continue up to 17500-17525/58700-58800. On the flip side, trading under 17350/58200 could possibly trigger intraday correction up to 17300-17275/58000-57900.
Technical stocks to purchase
IndusInd Bank
Buy, CMP: Rs 1,036.6, TARGET: Rs 1,090, SL: Rs 1,010
For the previous couple of trading sessions, the stock was trading in a rectangle formation, lastly, post the powerful breakout with big volume in the counter a powerful base has been formed for the new leg of an uptrend from present levels.
Motherson Sumi Systems
Buy, CMP: Rs 221.95, TARGET: Rs 235, SL: Rs 216
The stock is into a gradual up move with a greater low series formation in addition on the intraday chart the counter has formed an Inverse Head and Shoulder chart pattern which hints at a powerful uptrend momentum in the close to term.
Polycab India
Buy, CMP: Rs 2,462.95, TARGET: Rs 2,590, SL: Rs 2,410
The stock is comfortably trading above the upper variety of the parabolic SAR indicator which indicates a powerful trending up move in the stock to persist. Moreover, the structure of the stock has a bullish continuation formation with a greater bottom series on the day-to-day chart which specifies bullishness to continue more than a period of time.
State Bank of India (SBI)
Buy, CMP: Rs 433, TARGET: Rs 455, SL: Rs 423
For the previous couple of trading sessions, the stock had witnessed a gradual up move nevertheless the counter is trading in a variety with decent volume activity and breakout from the variety is pretty probably as the formation suggests that the stock is into the accumulation stage therefore fresh breakout move is anticipated for a new leg of uptrend in the close to term.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)