By Shrikant Chouhan
The benchmark indices witnessed lacklustre activity, on Tuesday the nifty ended at 18118 while the Sensex closed at 60978. Among Sectors, the uptrend rally continued in Auto stocks, as a result, the Auto index rallied over 1 percent whereas PSU Bank and Reality indices lost the most, both the indices trimmed over 1 percent. Technically, the indices consistently take resistance near 18200/61300 and it also formed a double top formation on intraday charts which is broadly negative. In addition, the indices have formed a small bearish candle that also indicates further weakness from the current levels. We are of the view that the current market texture is non-directional perhaps traders are waiting for either side breakout. For the bulls, 18200/61300 would be the fresh breakout level. Above this, the Nifty/Sensex could move up to 18400-18500/61800-62000. On the flip side, 18050/60750 or 20-day SMA would be the sacrosanct support zone. Below the same, we could expect a quick intraday selloff. Below which, the indices could slip to 17900/60200.
For the last few weeks, the counter was stuck in a range-bound movement and presently we witnessed a range breakout. Moreover, the closing above its resistance zone suggests that the counter has good potential for further upside.
BPCL: BUY, CMP 348.95, TARGET 367, SL 340
After a remarkable rally in the past few weeks, the stock went into a consolidation mode. At present, the structure is indicating at a likely breakout of the consolidation phase with a decent volume. Hence, the formation indicates at further bullish trend from the current levels.
BSOFT: BUY, CMP 306, TARGET 323, SL 297
The counter was stuck in a range-bound move near its demand zone. Presently it has given a range breakout with a strong bullish candlestick formation. The rising volume activity near the support zone is suggesting that the stock has good strength for bullish trend.
HDFCLIFE: BUY, CMP 590, TARGET 620, SL 577
After hitting the recent highs of around 620, the stock dropped on the lower side. However, it has found support near the important retracement zone. As a result, the pullback rally is very likely for further up move in the near term.
(Shrikant Chouhan is Head of Equity Research (Retail) at Kotak Securities. Views are author’s own. The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)