By Shrikant Chouhan
The benchmark indices continued positive momentum fourth day in a row, the nifty ends 129 points higher while the Sensex was up by 375 points. Among Sectors, Metal and Pharma indices outperformed whereas intraday profit booking was seen in selective PSU Banks stocks. Technically, after a promising 18000/60500 breakout on last Tuesday, indices opened with a gap up and after a strong opening, the entire day they hovered between 18060-18175/60870-61280. In addition, on daily charts the indices have formed Doji candlestick formation which indicates indecisiveness between the bulls and bears.
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HINDALCO: BUY,Target price: Rs 435| Stop loss: Rs 405For the past few sessions, the stock is into a range-bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed an ascending triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.
ICICIPRULI: BUYTarget price: Rs 545| Stop loss: Rs 508After a medium-term correction, eventually, the stock took support and reversed its trend. Post reversal, it has formed double bottom chart formation. The overall pattern offers a buying opportunity for the positional traders with a decent risk-reward ratio.
INDIACEM: BUYTarget price: Rs 255| Stop loss: Rs 238On the daily chart, post reversal from its multiple support zone the stock is into a gradual up move in a rising channel pattern. The texture of the chart pattern suggests upward movement from the current level is very likely to continue in the coming sessions.
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ADANIPORTS: BUYTarget price: Rs 880| Stop loss: Rs 825The counter has formed a rounding bottom chart formation and it has witnessed the trend reversal on the daily scale. The formation suggests a revival of the uptrend from the current levels for fresh leg of up move.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own. Please consult your investment advisor before investing.)