For the trend following traders, the support has shifted to 17250/57650 from 17100/57200.
By Shrikant Chouhan
The NSE Nifty 50 ended 113 points higher while the Sensex was up by 395 points. On Tuesday due to stable global cues and modest correction on crude oil price our market opened with a gap up but after a strong opening the entire day. It hovered between 17235/57650 to 17340/58000 Among sectors, strong buying interest continued in Pharma and Reality stocks whereas Media stocks witnessed profit booking at higher levels. Technically, post yesterday promising reversal formation, the index maintains the uptrend continuation formation which is largely positive.
We are of the view that, as long as the index is trading above a 50 day SMA the short term texture is positive. For the trend following traders, the support has shifted to 17250/57650 from 17100/57200. Above the level of 17250/57650 the index could touch the level of 17450/58300 and 17500/58500. On the other hand, quick intraday correction till 17200-17140/57500-57350 is not ruled out, if the index succeeds to trade below 17250/57650.
Housing Development Finance Corporation
BUY, CMP 2337.35, TARGET 2450, SL 2290
The stock had witnessed gradual price decline post its upward movement. However, reversal is seen from its important retracement support zone on the daily charts. The formation indicates the stock is very likely to resume its new leg of the uptrend from the current levels.
Sun Pharmaceuticals
BUY, CMP 919.35, TARGET 960, SL 900
After a robust rally, the counter is consolidating in a triangle formation and recent price volume action suggest a likely breakout from the chart formation. The incremental volume activity indicates the beginning of a new up move in the counter.
DLF
BUY, CMP 372.95, TARGET 390, SL 363
The counter is trading in a rising channel constantly. The Higher High and Higher Low chart formations are apparent in the counter. Therefore, upward movement from the current level is very likely to remain in the near term.
Hindustan Unilever Ltd
BUY, CMP 1987.05, TARGET 2080, SL 1945
On the weekly scale, the stock is seen consolidating near its demand zone. Moreover, on the daily chart, the counter has reversed from its double bottom support. Therefore, upward movement from the current level is very likely in the coming horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)
