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India Cements, JSW Steel among stocks to buy; market texture non-directional, use level-based trading strategy

The current market texture is non-directional hence level based trading would be the ideal strategy for day traders.

India Cements, JSW Steel among stocks to buy; market texture non-directional, use level-based trading strategy
18150 and 61100 could be the immediate Nifty anf Sensex support zone for the traders

By Shrikant Chouhan

On Tuesday, the benchmark indices witnessed a pullback rally, the Nifty ended 89 points higher while the Sensex was up by 274 points. Among sectors, PSU bank index continued to outperform whereas Nifty Realty registered profit booking. Technically, after a three days price correction, indices NSE Nifty 50 and BSE Sensex took support around 18150 and 61100 respectively and reversed. They also formed a small bullish candle on daily charts. We are of the view that 10 days SMA (Simple Moving Average) 18272 and 61500 would be the immediate hurdle for bulls.

On the flip side, 18150 and 61100 could be the immediate support zone for the traders. Above 10 days SMA levels of 18272 and 61500, the indices could move to 18370 and 61800 levels respectively. Further upside may also continue which could lift the indices to 18420 and 62000. However, below 18150 and 61100 levels, the indices could slip till 18100, 18050 and 60900, 60650 levels respectively. The current market texture is non-directional hence level based trading would be the ideal strategy for day traders.

India Cements: BUY
CMP: Rs 238.3 | Target price: Rs 250| Stop Loss: Rs 232

The counter had been in a declining trend in the past few sessions. However, at present there is a pause in its downward movement due to its strong multiple support levels. The stock has reversed its trend from its demand zone, which could act as a strong base, simultaneously making it a favorable candidate in terms of risk and reward.

JSW Steel: BUY
CMP: Rs 708.25 | Target price: Rs 745| Stop loss: Rs 693

On the daily scale, the stock has presented a robust rally. After a breather of few trading sessions and a pause in the momentum within a range, finally the stock is again gaining bullish traction for further upside. Therefore, short-term texture is looking attractive for bullish continuation formation from the current levels.

Mahindra and Mahindra (M&M): BUY
CMP: Rs 1228.45 | Target price: Rs 1290 | Stop loss: Rs 1200

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 near its demand zone. Therefore, upward movement from the current level is expected to resume in the coming sessions.

L&T Technology Services (LTTS): BUY
CMP: Rs 3855.8 | Target price: Rs 4050 | Stop loss: Rs 3770

On the daily scale, the counter has formed an ascending triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. The stock recommendations in this story are by the respective analyst. 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.)

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