By Shrikant Chouhan
The benchmark indices continued the positive momentum as the Nifty ended 178 points higher while the Sensex was up by 549 points. Among Sectors, all the major sectoral indices were traded in the green but PSU Bank index outperformed, rallied nearly 4 per cent. Technically, on the backdrop of strong global cues, our market opened with a gap up and entire day hovered near 50 day SMA (Simple Moving Average) level. We are of the view that the short-term texture of the market is positive and now 50 days SMA or 17525 and 59150 would act as a key resistance zone for the Nifty and Sensex respectively.
For the trend-following traders, 17525 for Nifty and 59150 for Sensex would be the next breakout levels. Above which, Nifty and could move up to 17600-17650 and 59400-59500 respectively. On the flip side, quick intraday correction is possible if the indices breach the 17435, and 58750 support levels respectively. Below which, Nifty could slip till 17350, and Sensex till 58500.
IndusInd Bank: BUY
CMP: Rs 1223.25 | Target: Rs 1280| SL: 1190
On the daily charts, the counter has given a breakout of the Symmetrical triangle chart pattern along with decent volume activity. The structure suggests that the counter has enough potential for further upside from the current levels.
HDFC Life: BUY
CMP: Rs 531.25 | Target: Rs 560| SL: Rs 520
The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range-bound mode near its demand zone, which indicates for accumulation at these lower levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
LIC Housing Finance: BUY
CMP: Rs 415.15 | Target: Rs 435 | SL: Rs 405
On a broader time frame, the counter is consolidating in a range-bound mode. In addition, the bullish activity on daily charts near its upper boundary of the trading range indicates that the counter could start its fresh up move from the current levels.
CMP: Rs 340.3 | Target: Rs 358 | SL: Rs 332
For the last few sessions, the counter was stuck in a range-bound movement and presently we witnessed a range breakout. Moreover, the closing above its short-term moving averages, suggesting that the stock has good strength for further upside.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own. Please consult your financial advisor before investing)