By Shrikant Chouhan
On last Tuesday, the benchmark indices witnessed profit booking at higher levels, the nifty ended 12 points lower while the Sensex closed 94 points higher. Among Sectors, Majority sectoral indices witnessed profit booking at higher levels but Midcap and Small cap, Media and Reality stocks corrected sharply, whereas IT index gained nearly 1 percent. Technically, after a gap up opening the market consistently witnessing selling pressure at higher levels. However, the medium term texture of the market is still in to the positive side. We are of the view that, in the near future we could see a range bound activity. For the traders now, 19,900 -19,850 could be the key support levels while 20,100 – 20,150 could be the immediate resistance areas for the bulls. For traders buying on dips and sell on rallies would be the ideal strategy.
Stock Recommendations
Wipro
BUY I CMP Rs 435 I TARGET Rs 455 I SL Rs 425
On the daily time frame, after the sharp up move, the stock was into a consolidation phase and finally, it has given a breakout from its Flag chart pattern. Moreover, the incremental volume activity is indicating further up move in the coming sessions.
Interglobe Aviation
BUY I CMP Rs 2,500 I TARGET Rs 2,620 I SL Rs 2,450
The counter is trading into a range bound mode for the last few sessions, and presently the counter is near the breakout line of the rectangle chart pattern. Hence, the recent price action indicates a breakout for a new leg of up move in the near term.
ICICI Bank
BUY I CMP Rs 989.6 I TARGET Rs 1,040 I SL Rs 970
The counter is trading in a rising channel constantly on the daily scale. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength. Therefore, upward movement from the current level is very likely to remain in the near future.
UltraTech Cement
BUY I CMP Rs 8,583 I TARGET Rs 9,000 I SL Rs 8410
On the weekly scale, the counter is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggest that the counter is likely to maintain bullish continuation formation in the coming horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)