If the Nifty 50 index takes time to surpass the 15900 levels, the momentum would shift in defensive sectors (FMCG, technology and pharmaceuticals).
By Shrikant Chouhan
On the weekly basis, we saw a spectacular recovery in the market. Last week, the market moved to the 15450 level, which was the previous highest level for the market, however, as the market fell on that support, we saw a broad-based recovery in the market. Commodities and financials joined the rally, signaling market readiness to push back the 16000 levels.
The Nifty touched a previous high on Tuesday and invited profits. The Nifty / Sensex gradually improved from 15900 to 15750. If we look at the market on the basis of closing, it can be called a static closing. The main reason behind this is the testimony of the US Fed. Monthly/quarterly expiration is also a big trigger. For Nifty 15670 and 15800 are important trading areas in the market. Keep a stop loss of 15550 and buy up to 15700/15650. Be prepared above 15900 for 16050/16150 levels.
If the market takes time to surpass the 15900 levels, the momentum would shift in defensive sectors (FMCG, technology and pharmaceuticals). However, after the dismissal of 15900, the commodities and financial stocks would support the market to surpass 16000 levels.
The stock is trading into a Rising Channel chart formation making the higher top and higher bottom series on a weekly and monthly scale, as a result, all major technical trend indicators such as Macd and ADX are strong and steady. Therefore upward movement from the current level is very likely to continue in the coming sessions.
BUY, CMP: Rs 4,297, TARGET: Rs 4,510, SL: Rs 4,210
The stock is into a strong uptrend and any minor correction is seen as a buying opportunity by the bulls, recently after the strong upside rally till 4400 the stock had faced resistance which resulted in the gradual down move but eventually, it found support near 30 Days SMA and reversed with a strong bullish candlestick formation, hence we expect the rising trend to persist from the current levels.
SBI Life Insurance Company
BUY, CMP: Rs 1,005, TARGET: Rs 1,055, SL: Rs 985
For the past few trading sessions, the stock is trading in a rectangle formation near its previous highs and holding well above its short term moving averages hence a strong base has been shaped for the new leg of an uptrend for the counter, additionally the rising volume along with strong bullish candlestick pattern indicates for a fresh up move in the near term.
BUY, CMP: Rs 337.25, TARGET: Rs 355, SL: Rs 330
On a broader time frame, the stock has formed Higher High and Higher Low chart pattern which lead it to upward movement, however, the recent price correction from its resistance area has plunged the counter till its important retracement zone as a result the pullback rally is seen for further up move from the current levels.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)