By Shrikant Chouhan
On Tuesday, the benchmark indices bounced back sharply. NSE Nifty ended 110 points higher while the Sensex was up by 402 points. Among the sectoral indices, PSU Bank index demonstrated outperformance, rallied nearly 4 percent. Despite the strong momentum, some profit booking was seen in selective realty stocks. As a result, the Nifty Realty index shed nearly 1 percent. Technically, the market not only reclaimed 20-day SMA (Simple Moving Average) level but it succeeds to close above the same which is broadly positive.
A bullish candle on daily carts and promising reversal formation indicating continuation of uptrend wave in the near future. We are of the view that uptrend texture is likely to continue in the near future and 18,700-18,725/62,800-63,000 would be the next resistance zone for the bulls. On the other side, a fresh selloff is possible only after dismissal of 18,450/62,000. Below the same, traders may prefer to exit out from the trading long positions.
Stock Call: Muthoot Finance
BUY | CMP: Rs 1105.35 | TARGET: Rs 1160 | SL: Rs 1080
After hitting the recent highs of around 1160, the stock dropped on the lower side. However, it has found support near the important retracement zone. As a result, the pullback rally is very likely for further up move in the near term.
Stock Call: SBI Life
BUY | CMP: Rs 1277.8 | TARGET: Rs 1340 | SL: Rs 1250
The counter is into a gradual up move with a higher low series formation. Additionally, it has formed a Cup and Handle chart pattern with decent volume activity. Therefore, the breakout of the range for moving further upside is very likely to occur in the coming horizon.
Stock Call: ICICI Bank
BUY | CMP: Rs 932.95 | TARGET: Rs 980 | SL: Rs 915
The stock is into a range bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed an triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.
Stock Call: M&M
BUY | CMP: Rs 1283.35 | TARGET: Rs 1350 | SL: Rs 1255
After remarkable rally in the past few weeks, the stock went into a range bound mode. At present, the stock is seen coming out of the consolidation phase with a range breakout. Hence, the formation indicates a further uptrend from the current levels.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own. The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)