By Shrikant Chouhan
Technically, after a positive opening on Tuesday, the index witnessed selling pressure at higher levels. From the high point of the day, Nifty 50 and Sensex trimmed 185 and 685 points, respectively. We are of the view that the market texture is weak but due to temporary oversold conditions we could see a quick pullback rally from the current levels. For the bulls, 17,350/59,200 could be the immediate trigger level, above which the index could move up to 17,425-17,480/59,500-59,650. On the flip side, as long as the index is trading below 17,350/59,200, the correction wave is likely to continue. Below the same, Nifty could slip till 17,250-17,200/58,900-58,750.
Asian Paints: BUYCMP: Rs 2830 | TARGET: Rs 2915 | SL: Rs 2785
On Tuesday, the stock rallied 3 percent and also formed a long bullish candle. After a long time, it succeeded to trade above 20-day SMA (Simple Moving Average) or 2780. The short-term formation suggests bullish sentiment is likely to continue in the near future.
Britannia Industries: BUYCMP: Rs 4467 | TARGET: Rs 4650 | SL: Rs 4380
Post-short-term correction, the stock consistently takes support near the 50-day SMA (Simple Moving Average). We are of the view that the stock has completed one leg of correction and currently trading near the important retracement support level. The texture suggests a strong possibility of a fresh uptrend rally from the current levels.
Concor: BUYCMP: Rs 591 | TARGET: Rs 625 | SL: Rs 580
After a long correction eventually the stock took support near 590. Currently, the stock has formed Doji reversal formation, and post reversal it is consolidating between the 580-590 price ranges. The short-term texture indicates a strong possibility of a fresh uptrend rally from the current levels. Unless it trades below 580, positional traders retain an optimistic stance and look for a target of 625 fresh buying can be considered now and on dips, if any between 595 and 588 levels with a stop loss below 580.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)