By Riyank Arora
On Tuesday, the benchmark index opened with a gap down of around 149 points and rose almost 57 points towards closing. The Nifty ended 92 points lower, while the Sensex was down by 361 points. Among sectors, the Nifty Media Index led the fall, with the realty stocks doing slightly better trading on a positive note.
Some IT stocks witnessed profit booking in Tuesday’s session. Technically, the market is trading well above its support level of 21,850. The major resistance lies at 22,200 levels. Overall, the trend remains positive as we trade above the minor support marks of 21,950 and 22,000 as well.
Stock Recommendations:
Juniper Hotels
BUY | CMP: 485.25 | TARGET: 550.00 | SL: 469.00
The stock gave a good breakout above its important resistance zone of 490 to 505 on its daily charts. A major support is seen to be placed around 470 as per the hourly charts on Juniper Hotels, which should serve as a good stop loss for momentum players. Potential targets of 550 and above look achievable in the near term.
Hindustan Copper
BUY | CMP: 282.55 | TARGET: 310.00 | SL: 265.00
The stock witnessed a good breakout out of its falling wedge pattern on the daily charts. Volume in Tuesday’s session was nearly twice its average (30-day) traded volume on the stock. With a good momentum pick-up and rally in the metal stocks, Hindustan Copper looks like a good buy with a strict stop loss at 265 for potential targets of 310 and above.
GAIL
BUY | CMP: 180.50 | TARGET: 195.00 | SL: 175.00
The stock has given a good breakout above its anchor VWAP resistance mark of 178.00 on its daily charts. Volumes in Tuesday’s session were almost 1.25 times its average (30-day) traded volume, which signals good momentum pick-up along with the price in the stock.
At current levels of 180.50, the stock is looking like a good buy with an approach to add slowly on declines, strict stop loss at 175 mark for potential targets of 195 and above.
(Riyank Arora, Technical Analyst, Mehta Equities. Views expressed are author’s own. Please consult your financial advisor before investing.)