By Shrikant Chouhan
The benchmark indices BSE Sensex and Nifty 50 witnessed roller coaster activity on the Union Budget 2022 day. After a volatile trading session, the Nifty ended 264 points higher while the Sensex was up by 937 points. Among sectors, the metal index was the top gainer, rallying over 4 per cent. Despite strong momentum, some profit booking was seen in Auto and oil stocks. The overall Budget 2022 outcome was positive. The kind of focus put on infrastructure in this year’s budget was extremely positive. Technically, after a sharp intraday dip the market recovered sharply and succeeded to close near the day’s highest level.
On daily charts, the market maintained an uptrend continuation formation and after a long time it succeeded to close above the 50 day SMA which is broadly positive. For the day, short term traders, now 17400/58300 and 17250/57750 would be the key support levels to watch out. Above which the index would touch the level of 17750-17850/59100-59500. On the flip side, dismissal of 17500/58500 could trigger quick intraday correction up to 17400-17350/58300-58200.
Technical stocks to buy
Adani Ports and Special Economic Zone
BUY, CMP: Rs 738.75, TARGET: Rs 775, SL: Rs 720
On the weekly scale, the stock is seen consolidating in a range and currently, it is available near the lower boundary of the range, additionally, on the daily chart, post reversal from its double bottom support zone the structure indicates further upward movement.
Shriram Transport Finance
BUY, CMP: Rs 1,280.25, TARGET: Rs 1,340, SL: Rs 1,250
For the last few sessions, the counter was stuck in a range-bound move and presently we witnessed a range breakout and closing above its short-term moving averages suggesting that the stock has good strength for further upside.
BUY, CMP: Rs 103.3, TARGET: Rs 109, SL: Rs 100
The stock witnessed gradual price decline from the higher levels, however, its down move took a pause with a hammer candlestick pattern and the counter has formed a rounding bottom chart formation with decent volume activity and retreated from the lower levels for a fresh leg of uptrend in coming trading sessions.
BUY, CMP: Rs 781.9, TARGET: Rs 820, SL: Rs 765
The counter is trading in a rising channel constantly. 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 term.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)