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By Shrikant Chouhan
After a pointy pullback rally from 14415/48720, benchmark indices hovering within the vary of 14750 to 14950/ 49600-49000. At present, the Nifty is buying and selling close to its earlier resistance degree and on the intraday chart it has fashioned decrease prime formation which suggests non permanent weak point. Nonetheless, the bigger texture of the market remains to be bullish and more likely to proceed within the medium time period. Technically, if indices succeed to commerce above the 50 day SMA or 14700/48500 degree then uptrend formation will proceed as much as 15000/ 49500. Additional upside may additionally proceed which may elevate indices until 15200/ 50600. Nonetheless, dismissal of 14700/ 48500 may set off additional weak point as much as 14600-14500/48200-47950.
Technical inventory picks
For the final two months, the inventory has been in a downward channel after hitting the all-time excessive at round 425, nonetheless it managed to bounce again from its key retracement zone and at the moment forming an Ascending Triangle chart formation the place plainly breakout is more likely to happen from its resistance line.
BUY, CMP: Rs 1,029.65, TARGET: Rs 1,080, SL: Rs 1,000
Submit decline from the highs of 1230, the inventory has fashioned a robust base in its a number of help space of round 1000, in the meantime a optimistic crossover in Stochastic close to help and a breakout of the short-term sloping pattern line on the every day chart signifies a brand new leg of bullish motion within the counter.
BUY, CMP: Rs 1,368.45, TARGET: Rs 1,440, SL: Rs 1,340
On a broader time-frame chart, it’s evident that the inventory has a robust demand zone within the 1300 and 1400 vary the place earlier it has fashioned a drop, base, and rally formation. Not too long ago a Cup and Deal with sample on the every day chart could be seen therefore sturdy upside is predicted from the present ranges.
Power Grid Corporation of India
BUY, CMP: Rs 223.4, TARGET: Rs 235, SL: Rs 216
The inventory is buying and selling into an Ascending Triangle chart sample with incremental quantity exercise on the every day chart, moreover, all main technical pattern indicators reminiscent of Stochastic and ADX are sturdy and intact. Thus breakout up transfer from the present degree could be very more likely to happen within the close to time period.
(Shrikant Chouhan is Government Vice President (Fairness Technical Analysis), Kotak Securities. Views expressed are the creator’s personal.)