By Riyank Arora
On Tuesday, the benchmark index opened with a gap up of around 38 points and fell almost 275 points from the opening. The Nifty ended 215 points lower, while the Sensex was down by 758 points. Among sectors, the Nifty PSU Bank Index led the rally, with Consumer Durable stocks and the FMCG Sector being among the most beaten down.
Pharma stocks saw good profit booking as well. Technically, the market is now touching a crucial support zone, as per technicals, and looks poised for a good move. With the benchmark trading near the 21,500 zone, strong support lies near the 21,450 mark. On the upside, resistance would be near 21,750 and 21,800 levels.
Stock Recommendations:
INOX India Ltd
BUY | CMP: 895.35 | TARGET: 990.00 | SL: 850.00
The stock has given a strong breakout, successfully reversing its downtrend. An immediate support lies at the 850 mark, below which the stock would become weak. On the upside, the stock should likely extend its rally towards 990 and above in a spree of a momentum rally. Overall, the stock looks poised for a big upside move in the coming few weeks.
HFCL Ltd.
BUY | CMP: 101.05 | TARGET: 125.00 | SL: 95.00
The stock gave a good breakout above its Jan 2022 highs and is now re-testing its breakout level. With the overall trend being positive and the stock re-visiting its anchor VWAP support zones, it appears that the stock should likely head higher towards 125 and above – in a spree of a momentum rally. A set stop loss at 95 should be placed for managing the risk effectively.
Multi Commodity Exchange Of India Ltd – MCX
BUY | CMP: 3345.40 | TARGET: 3700.00 | SL: 3200.00
The stock has given a good breakout from its recent last 2 months consolidation phase. Post its successful breakout, the stock is now re-testing its breakout zone. The overall trend looks bullish, and strong support lies near the 3200 mark, below which the stock would become weak. Calculative upside targets of 3700 and 3750 look likely in a matter of the next few weeks.
(Riyank Arora, Technical Analyst, Mehta Equities. Views expressed are author’s own. Please consult your financial advisor before investing.)