By Shrikant Chouhan
For the fourth consecutive day, the market closed in the negative territory on Tuesday, with hefty losses. From 17800/60500, the Nifty/Sensex collapsed to 16980/57720, without any meaningful recovery. The stocks of large-cap technology, PSU Bank, Auto and NBFCs closed with a decline of more than 5 per cent. Private banks and chemical stocks managed to close in the positive zone. On the other hand, the psychological level of 17000/57700 provided important support in the second half of the trading session. Technically, Nifty/Sensex can take a support between 17000/57700 and 16800/57300 levels. On the upside, 17150/58400 and 17250/58700 should act as resistance areas in the near term. The ideal strategy should be to create positional long trade between 17000/57700 to 16800/57300 levels. Bank Nifty closed below 39600 levels but remained above the previous lower support which was at 39400 levels, which would help the index to pull back recent losses in the near term. However, if 39100 is dismissed, it could slide towards 38500 levels.
SRF: BUY – CMP Rs 2310
Target – Rs 2420 – SL Rs 2260
The counter is trading in an upward trend from past many sessions. Moreover, the counter has formed an inverse head and shoulder chart pattern on daily charts. Therefore, the structure hints for a strong breakout move in the near term.
INDIACEM: BUY – CMP Rs 187.7
Target – Rs 198 – SL Rs 182
On the weekly scale, the stock is consolidating in a broad range and currently, it is available near the lower boundary of the range. Additionally, on the daily chart, a reversal is evident from the triple bottom support zone for further upward movement.
NMDC: BUY – CMP Rs 116.25
Target Rs 123 – SL Rs 113
The counter is into a gradual up move with a higher low series formation, along with incremental volume activity. Additionally, on the daily chart, the counter has formed a rounding bottom chart pattern, which suggests at a bullish momentum from current levels in the near term.
MCDOWELL-N: BUY – CMP Rs 767.5
Target Rs 805 – SL Rs 750
The stock was into a sloping channel from the past few weeks. Eventually, its downward move stopped near the important demand zone. Moreover, the strong rebound in the counter and recent trend line breakout confirms that the up move to persist in the coming horizon.
(Shrikant Chouhan is head of equity research (Retail) at Kotak Securities Ltd. Views expressed are author’s own.)