16980/57100 would be a sacrosanct support level for the swing traders, above the same uptrend momentum likely to continue up to 17200/58200
By Shrikant Chouhan
The benchmark indices witnessed a spectacular rally rallying over 200/600 points and hit a fresh all-time high of 17153.50/57982.47. On Tuesday, post muted opening the market hovering in the range of 16915/55676 to 16995/57150. But in the afternoon the Nifty successfully clear 17000/57200 psychological mark and after that intraday breakout, it rallied over 150/600 points. Among sectors, Consumption, Metal and IT witnessed buying interest whereas, some selling pressure was seen in Media and selective Auto stocks. Technically, post-breakout the market continues the bullish continuation formation which is broadly positive.
But in the last three trading sessions, the Nifty rallied over 580/2300 points, and due to an overstretched rally, the day traders may take a caution stance near the 17200/58200 resistance level. We are of the view that, as medium term trend is still into the positive side and likely to continue in the near future. Hence the ideal strategy for day traders would be to buy on dips and sell on rallies. 16980/57100 would be a sacrosanct support level for the swing traders, above the same uptrend momentum likely to continue up to 17200/58200 further upside may also continue which could lift the index up to 17275/58450. On the flip side, a strong possibility of one quick intraday correction up to 16900/56800 is not ruled out if the index succeeds to trade below the 16980/57100 support level.
Technical stocks to buy
BUY, CMP: Rs 1,447.65, TARGET: Rs 1,520, SL: Rs 1,414
The stock had presented a remarkable up move with the bullish continuation chart patterns continuously, after a breather of few trading sessions the counter is ready for further upward movement from the current levels.
BUY, CMP: Rs 1,500.4, TARGET: Rs 1,575, SL: Rs 1,470
Post formation of the double bottom chart pattern, the reversal is evident in the counter with rising volume activity on the daily chart, additionally, the stock has given a breakout of the sloping trend line which validates reversal of the trend for further up move.
BUY, CMP: Rs 767.2, TARGET: Rs 805, SL: Rs 750
The counter has formed a drop base and rally structure from its demand zone with the increasing volume; moreover, close above the short term moving averages on the daily chart are suggesting a bullish trend in the coming horizon.
BUY, CMP: Rs 844.65, TARGET: Rs 888, SL: Rs 825
Post recent correction from the highs of around 890 the stock went into a consolidation phase, eventually, it has formed a rounding bottom chart formation with rising volume and retreated from the lower levels for a fresh leg of uptrend in coming trading sessions.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)