By Shrikant Chouhan
Finally, the industry has broken the boring trading variety decisively. The most effective component of Tuesday’s spectacular session was the contribution from substantial-cap organizations. The Nifty Midcap and Small cap index closed in the damaging territory though Nifty IT, Bank Nifty and FMCG indices managed to provide gains of more than 1.50 per cent. On a closing basis, the industry closed above the level of 15,900 right after the consolidation of the last two months and right here onwards earlier resistance 15,900 would act as main assistance for the industry. Any correction to 15,900/15,950 levels would be an chance to re-enter the industry. Above 16,000 levels, the Nifty is heading for the levels of 16,270 with a minor resistance at 16,200.
Stocks to purchase
HDFC BANK
Get, CMP: Rs 1,434.25, TARGET: Rs 1,510, SL: Rs 1,400
Post its descent from the levels of 1540 the counter went into a narrow variety-bound movement, lately a robust bullish candlestick was formed close to the several assistance zone which will act as a very good base in the close to term and the existing reversal pattern must move the stock on the greater side in coming sessions.
ICICI Prudential Life Insurance Company
Get, CMP: Rs 651.2, TARGET: Rs 685, SL: Rs 635
The stock has presented an unbelievable up move in the last several months and it is trading in a increasing channel regularly. The Higher higher and greater low chart formations are apparent in the counter, in addition, trend indicators such as MACD and ADX are displaying bullish strength. Therefore upward movement from the existing level is really most likely to stay in the close to term.
SAIL
Get, CMP: Rs 138.8, TARGET: Rs 147, SL: Rs 135
The counter is into a gradual up move and right after breaking out of the trading variety there is a pause in the momentum and it has formed a Cup and Handle chart pattern with the decent volume hence the breakout of the variety for moving additional upside is really most likely to happen in the close to term.
Godrej Industries
Get, CMP: Rs 581, TARGET: Rs 610, SL: Rs 565
For the last handful of sessions, the counter was into a slanting mode forming reduced highs but sooner or later, it has offered a robust breakout of the Symmetrical triangle chart pattern along with enormous volume which indicates that the counter has adequate prospective for upside from the existing levels.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)