By Shrikant Chouhan
On last Tuesday, the benchmark indices NSE Nifty 50 and BSE Sensex witnessed range bound activity. Among Sectors, IT continued the positive momentum, rallied over 1 percent whereas profit booking were seen in Media and PSU Banks stocks, as a result, both the indices shed over 1 percent. Technically, after a strong uptrend rally, the indices witnessed range bound activity.
Intraday correction formation indicating range bound activity is likely to continue In the near future. We are of the view that for Nifty and Sensex, 19,700/66,600 could be the key support level for the day traders. Below which, we could see a quick intraday correction till 19,650-19,600/66,400-66,300. On the flip side, as long as the indices are trading above 19,700/66,600 the uptrend wave is likely to continue. Above the same, the indices could rally till 19,825-19,875/66,900-67,000.
Oberoi Realty Ltd
BUY | CMP: Rs 1054 | TARGET: Rs 1110 | SL: Rs 1030
The counter is trading in a rising channel constantly on the weekly scale. 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 future.
CIPLA
BUY | CMP: Rs 1030 | TARGET: Rs 1080 | SL: Rs 1010
The stock has shown a remarkable rally from the lows in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low series on weekly chart formation is evident in the stock. Hence, the formation is indicating a bullish continuation pattern to continue in the coming horizon.
India Cements Ltd
BUY | CMP: Rs 210.25 | TARGET: Rs 222 | SL: Rs 205
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, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
Siemens Ltd
BUY | CMP: Rs 3708 | TARGET: Rs 3890 | SL: Rs 3630
After a robust rally of the past few weeks, the stock went into a consolidation mode. At present, the structure is indicating a likely breakout of the consolidation phase. Hence, the formation indicates a further bullish trend to resume from the current levels.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)