By Shrikant Chouhan
The benchmark indices witnessed range bound trading session. The Nifty ended 13 points lower while the Sensex shed 64 points. Among sectors, metal and energy stocks outperformed as both indices gained over 1 per cent, whereas some intraday profit booking was seen in selective FMCG and private banks stocks. Technically, the index opened with a strong note, but once again it witnessed profit booking near important resistance level, 17750/59500. Currently, Nifty, Sensex index is consolidating near 20 day SMA (Simple Moving Average).
We are of the view that, the indices are consistently taking support near 20 day SMA or 17550/58900 respectively. The texture suggests, as long the indices are holding 17550/58900, they could retest the level of 17750 -17850/59500-59800. On the flip side, fresh round of selling possible after dismissal of 17550/58900 respectively. Quick intraday correction possible, if the indices succeed in trading below 17550/58900. Below which, they could slip till 17500-17400/58700-58500.
Jindal Steel: BUY
CMP: Rs 436.7 | TARGET: Rs 60 | SL: Rs 425
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 near term.
CMP: Rs 324.25 | TARGET: Rs 340 | SL: Rs 317
After hitting the recent highs of 345, the stock dropped on the lower side. However, it has found support by forming double bottom chart formation. Additionally, the formation of a hammer candlestick pattern with decent volume indicates reversal move in the counter.
CMP: Rs 1040.85 | TARGET: Rs 1090 | SL: Rs 1020
Post the impressive performance in the last two months, the stock went into a range bound mode. At present, the stock is seen coming out of the consolidation phase with a range breakout. And hence the structure indicates a further uptrend from the current levels.
CMP: Rs 2950.8 | TARGET: Rs 3090 | SL: Rs 2890
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.)