By Shrikant chouhan
The market consistently formed higher high and higher low series formations on intraday charts which is largely positive and It also formed a bullish candle on daily charts that indicates the continuation of an uptrend in the near future. However, on intraday charts, the market texture is mildly overbought hence level based trading would be the ideal strategy for short-term traders. For the day traders now, 17725/60100 would be the key support level for Nifty and Sensex, above which, the market could rally till 17900-17925/60700-60800. On the flip side, below 17725/60100 a quick intraday correction is possible. Below the same, the indices could retest 17650-17625/59800-59700.
SAIL: BUY – CMP: Rs 82.65 – TARGET: Rs 87 – SL: Rs 80
For the past few weeks, the stock is into a consolidation phase with a higher low series formation. Meanwhile, on a daily scale, it has formed a triangle chart pattern. The structure indicates a breakout from the formation and the beginning of a new up move in the counter.
HCLTECH: BUY – CMP: Rs 1087.3 – TARGET: Rs 1140 – SL: Rs 1065
After the sharp-up move, the stock is trading in a range-bound movement well above its short-term moving averages. As a result, the formation of a Flag chart pattern on the daily scale is formed which points to bullish movement to resume in the near term.
AXISBANK: BUY – CMP: Rs 853.8 – TARGET: Rs 895 – SL: Rs 835
The stock had underperformed in the past many weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range-bound mode, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
M&M: BUY – CMP: Rs 1201.8 – TARGET: Rs 1260 – SL: Rs 1175
After the short-term correction in the counter from the higher levels, the downward momentum has taken a pause. On the daily charts, the counter has formed a rounding bottom chart formation along with decent volume activity and it has reversed its trend. The formation suggests an uptrend from the current levels in the near future.
(Shrikant chouhan is Head of equity Research (Retail) at Kotak Securities Ltd. Views expressed are author’s own.)
