Markets are likely to see trending activity after the FOMC meeting. The focus should be on FMCG and Infrastructure related stocks.
By Shrikant Chouhan
FMCG and technology stocks saved the market on Tuesday, otherwise, the Nifty/Sensex would have reached 14,800/50000 again due to weakness in bank stocks and metal companies. The global market was stable and long-term bond yields were also trading in the short-range. We believe that the markets would remain on the sidelines until the FOMC meeting is completed (Results will come Thursday morning) in the US. Keep an eye on the 14750/49800 and 15100/51000 range. Long positions should be bought between the levels of 14750/14800 (49800/50000) with a stop loss of 14700/49600 in the near future. We are likely to see trending activity after the FOMC meeting. The focus should be on FMCG and Infrastructure related stocks.
- Stocks to buy: Nifty resistance at 17800-17850; charts show Sun Pharma, Britannia, others may rally
- Wipro, Vodafone Idea, Britannia, HDFC Life, Dr Reddy’s, Stove Kraft, Embassy Office stocks in focus
- FMCG sector to drive growth as India revives post lockdown 2.0; HUL, Nestle, others look fundamentally strong
Technical stock picks are:
BUY, CMP: Rs: 3,489, TARGET: Rs 3,660, SL: Rs 3,420
After the strong rally from support zone of 3320 till 3500 the stock took a pause in momentum activity and currently on the daily time frame the stock has formed a cup and handle chart formation along with pick up in volume activity near its 20 day EMA which indicates uptrend move in near term.
BUY, CMP: Rs 87.6, TARGET: Rs 93, SL: Rs 84
The stock has presented a bullish continuation chart formation from the last few weeks and currently after the up move it is into a sideways movement forming a flag pattern on daily time frame. Positive parabolic SAR series and modest volume activity near important support level suggest strong possibility of fresh uptrend from current levels.
BUY, CMP: Rs 163.9, TARGET: Rs 173, SL: Rs 159
The stock has corrected around 15% from the levels of 185 to 158 and currently the stock has been hovering in its demand zone which has emerged as a good base for the stock. Formation of harami candlestick pattern near important support area indicates a bullish reversal.
BUY, CMP: Rs 333.9, TARGET: Rs 350, SL: Rs 325
After the strong rally from 200 to 350 levels, the stock went into a corrective pattern however a hammer candlestick formation has occurred near its 20 day EMA. For the positional traders 330 should be the key level to watch trading above the same with decent volume action we expect uptrend to resume in coming sessions.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)