By Shrikant Chouhan
The weekly opening of the Nifty / Sensex was constructive, the benchmark index Nifty/ Sensex opened at 15915.65/ 53126.73 however as a result of lack of follow-through shopping for it fell to 15800/52700 ranges. Amongst sectors, the Steel shares proceed the constructive momentum and powerful shopping for was in PSU Banks whereas intraday revenue reserving was in HDFC Life Insurance coverage Firm and selective IT shares.
On Tuesday, the market remained in a slender vary however with a adverse bias. Weak spot within the Asian markets, constant promoting strain from FIIs because the final 3 days and steadiness within the costs of Brent crude at 75 may very well be the few causes to maintain the market throughout the buying and selling vary. The market failed at 15900/52900 ranges, which is upward boundary for the market and weak spot from the identical may lead to gradual weak spot in the direction of 15670/52300 that’s the decrease boundary of the buying and selling vary and coincidently 20 days EMA can be positioned on the identical ranges that ought to act as reversal level for the market. We witnessed weak spot in Financials, Metals and Auto firms, which is a sign that purchasing breadth is poor. The exercise was extra into FMCG and Pharmaceutical shares. We should be a purchaser between 15720/52450 and 15670/52300 ranges. Preserve a closing cease loss at 15600/52100 ranges.
The market has spent virtually two weeks under the 15902 ranges, nevertheless, if this degree is damaged, the Nifty must transfer to the 16050/16150 (53750) degree. In response to choices statistics and retracement ranges, the Nifty / Sensex would discover assist at 15800/52800 and 15670/52300 ranges. If Nifty/Sensex derail under 15670/52300 they usually may fall to 15550/51800 or 15450/51500 ranges. Our technique ought to be to cut back the place between the degrees of 16050/16150 (53750).
LTI (Larsen & Toubro Infotech)
BUY, CMP: Rs 4,134.15, TARGET: Rs 4,350, SL: Rs 4,050
Put up formation of double backside chart sample round 3550 zone LTI confirmed a outstanding uptrend until 4200, after this robust rally it’s witnessing a range-bound exercise for the previous couple of periods and has fashioned a Cup and Deal with chart sample with the first rate quantity due to this fact the breakout of the vary for shifting additional upside could be very prone to happen within the close to time period.
BUY, CMP: Rs 979.6, TARGET: Rs 1,030, SL: Rs 960
The inventory has introduced a sturdy rally for the final many months and nonetheless it’s within the upward route, the inventory is consistently forming the Greater Excessive and Greater low collection sample furthermore current value quantity breakout signifies bullish momentum to maintain in coming days.
Housing Development Finance Corporation (HDFC)
BUY, CMP: Rs 2,501.2, TARGET: Rs 2,630, SL: Rs 2,450
For the previous few periods, the counter is buying and selling in a slender vary with incremental quantity exercise close to its assist zone which means that the inventory is into the buildup section; nevertheless lately the formation of a Hammer candlestick sample is seen within the counter which signifies robust reversal within the coming horizon.
BUY, CMP: Rs 2,086.15, TARGET: Rs 2,190, SL: Rs 2,040
After hitting the all-time excessive of 2133 the counter has witnessed a variety sure exercise for a number of periods nevertheless present vary breakout with incremental quantity together with the formation of robust bullish candlestick sample signifies that the counter has sufficient potential for additional upside from present ranges.
(Shrikant Chouhan is Government Vice President, Fairness Technical Analysis at Kotak Securities. Views expressed are the writer’s personal.)