Technically, the Nifty has held a level of 14550/48600 which suggests bulls are in total control and would like to take this ride towards 14750-14800/ 49300-49800 levels.
By Shrikant Chouhan
The market continued to remain positive for the second day in a row. On Tuesday, once again the benchmark index — Nifty/Sensex opened with a strong gap and quickly surpassed 14550/ 48600 mark, which is a short term resistance level. The important point is, the market not only crossed the resistance mark but even traded above 14550/ 48600 levels which is grossly positive for the Nifty /Sensex. Modest broader market participation and strong performance from Metal, PSU Banks and selective financial stocks helped trades to maintain a long stance over short.
Technically, the Nifty has held a level of 14550/48600 which suggests bulls are in total control and would like to take this ride towards 14750-14800/ 49300-49800 levels. Above 14550/ 48600 levels, we may see a pullback rally to continue up to 14700-14750/49100-49300. There is a possibility of a further upside that may continue to push the index upwards, till 14800/49800. On the flip side, dismissal of 14550/ 48600 could open one more leg of correction up to 14485/ 48200 levels.
BUY, CMP: Rs 1,028.5, TARGET: Rs 1,080, SL: Rs 1,005
Post decline from the levels of 1231 the stock went into a range-bound movement where a strong bullish activity is spotted near the multiple support zone. Additionally, the formation of a bullish Marubozu candlestick pattern with a good volume suggests a strong up move in the counter.
BUY, CMP: Rs 2,905.5, TARGET: Rs 3,050, SL: Rs 2,840
For the last two months, the stock has drifted downside after hitting the double top chart pattern at around 3620, and thereafter it entered into an accumulation phase near its important support area, finally, a strong reversal candlestick formation indicates the resumption of a bullish uptrend in the coming horizon.
The stock has created a good demand base at 400-410 levels, and the recent formation of the Cup and Handle chart pattern on the daily time frame chart indicates bullish movement in the near term is very likely to persist.
Post decline SBI formed a Rounding bottom chart pattern near its important retracement zone on the daily chart and the stock has reversed sharply by filling the bearish gap with a strong bullish candle therefore uptrend is expected to continue in the near term.
(Shrikant Chouhan is Executive Vice President (Equity Technical Research), Kotak Securities. Views expressed are the author’s own.)