By Shrikant Chouhan
The marketplace registered an incredibly volatile session, the Nifty/ Sensex closed 63/243 points reduce. The Nifty/ Sensex failed to sustain above the 14500/48400 resistance mark and due to constant promoting stress at larger levels along with tepid international cues the benchmark index corrected sharply. Among sectors, profit booking was observed in IT stocks whereas, Auto, Pharma and selective Media stocks witnessed shopping for interest.
We are of the view that, at present the Nifty / Sensex hovering in the variety of 14600 to 14400/ 47500-49000 cost variety and the texture of the pattern recommend narrow variety activity probably to continue in the close to future. Technically, the index has formed a reduce prime formation which is broadly unfavorable for the marketplace. The intraday chart recommend correction wave probably to continue if the Nifty/ Sensex succeed to trade beneath 14400/48100 and beneath the very same, the correction wave will continue up to 14200-14130/ 47350-47000 On the flip side, above 14400/48100 we can count on fast pullback rally till 14475-14525/ 48300-48500.
Jindal Steel and Power Ltd
Obtain, CMP: Rs 431.55, TARGET: Rs 455, SL: Rs 420
On the day-to-day time frame, immediately after the sharp up move, the stock was into a consolidation phase and ultimately, it has offered a breakout from its Flag chart pattern with incremental volume activity indicating additional up move in the coming horizon.
Sun Pharmaceutical Industries Ltd
Obtain, CMP: Rs 645.15, TARGET: Rs 675, SL: Rs 630
The stock is trading into a increasing channel pattern producing the larger prime and larger bottom series on weekly and month-to-month charts, consequently all key technical trend indicators such as MACD and ADX are powerful and intact. Thus upward movement from the existing level is really probably to stay in the close to term.
Bata India
SELL, CMP: Rs 1,297.65, TARGET: Rs 1,230, SL: Rs 1,330
The stock is in a downtrend exactly where the bears are very powerful at the moment as bulls are not capable to obtain strength, on the month-to-month scale as nicely the stock is trading beneath its increasing trend line and brief-term moving averages which indicates bearishness in the counter.
RBL Bank
SELL, CMP: Rs 174.55, TARGET: Rs 165, SL: Rs 180
Bearish continuation formation is evident in the counter as it is constantly producing reduce higher and reduce lows, therefore the all round structure of the stock recommend that it is heading to its prior demand zone on the downside
(Shrikant Chouhan is Executive Vice President (Equity Technical Research), Kotak Securities. Views expressed are the author’s personal.)