By Shrikant chouhan
The benchmark indices continued positive momentum for the second day in a row, the nifty ended 37 points higher while the Sensex was up by 126 points. Among Sectors, buying interest was seen in insurance stocks whereas despite positive sentiments intraday profit booking was seen in Media and FMCG stocks. Technically, positive consolidation formation on daily charts and higher bottom formation on intraday charts indicate a continuation of an uptrend wave in the near future. For the trend-following traders now 18150 for Nifty and 61000 for Sensex would be the trend decider level. Above which, they will rally till 18300-18350/61500-61700. On the flip side, below 18150/61000 uptrend would be vulnerable. Below the same, the indices could slip till 18050-18025/60700-60500.
CUMMINSIND: BUY, CMP 1398.05, TARGET 1470, SL 1370
The counter is trading in a range-bound mode with decent volume activity near its demand zone. The formation suggests that the stock is in the accumulation phase. Moreover, the closing above its short-term moving average is indicating a strong reversal from the current levels in the coming horizon.
TECHM: BUY, CMP 1023.75, TARGET 1075, SL 1005
After the robust rally, the stock has underperformed in the past few months. However, presently after the consolidation for a few sessions near the support zone, the counter is gaining bullish traction from the lower levels. Additionally, the formation of a strong bullish candlestick pattern hints at a likely breakout of its range-bound move. Therefore, a fresh leg of the up move from the current levels is expected in the near term.
HDFCBANK: BUY, CMP 1640.6, TARGET 1720, SL 1605
After a remarkable rally in the past few weeks, the stock went into a consolidation mode. At present, the stock is seen coming out of the consolidation phase with a decent volume activity. Hence the formation indicates a further uptrend from the current levels.
RAMCOCEM: BUY, CMP 715, TARGET 750, SL 700
The counter is into a gradual up move with a higher low series formation with incremental volume activity. Additionally, on the weekly chart, the counter has formed an Inverse Head and Shoulder chart pattern which hints at a strong breakout move in the near term.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views are author’s own. The stock recommendations in this story are by the respective research analysts and brokerage firms. 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.)