By Shrikant Chouhan
The Nifty/Sensex has risen by 1800/5400 points in the last 37 days. Nifty Metal, IT, Midcap and Small Cap indices are the top performers. Reliance Industries Ltd (RIL) has also contributed approximately 20 per cent in the current up move of the market. FMCG and Pharma are far behind this time. The Nifty/Sensex has a strong base between 15500/ and 15600. However, currently, the market is trading at the highest point of the current up move and we are witnessing mixed reaction in the market.
The stock-specific activity is increasing day by day, which is an indication of a “cautiously optimistic” approach from the traders. As the market is closed above the level of 15850/52750 we would see the levels 16050/53300 in the near term. Supports for the market exists at 15800/52600 and at 15750/52300. The strategy should be to buy indices only on plunges. The Bank-Nifty is heading for the levels of 35700. Need to be little careful while adding long positions with a long term view. The focus should be on Technology, Metals and the corporate facing bank.
India Cements
BUY, CMP: Rs 188.4, TARGET: Rs 199, SL: Rs 183
Post formation of double bottom chart pattern a strong recovery is seen in the counter with incremental volume activity on the daily chart, additionally, the stock has given a breakout of the supply trend line which endorses reversal of the trend for further up move.
HDFC Life Insurance Company
BUY, CMP: Rs 692.55, TARGET: Rs 727, SL: Rs 675
Post breakout from the levels of 685 the stock has been hovering in a range-bound mode but recent bullish engulfing candlestick formation with rising volume indicates that the bulls are back and the stock is ready for its uptrend continuation in the near term.
IndusInd Bank
BUY, CMP: Rs 1,034.45, TARGET: Rs 1,085, SL: Rs 1,010
For the past few trading sessions, there is a narrow range activity within the rising channel of the counter without any meaningful rise, at the same time a surge in volume is seen near the breakout zone along with Inverted Hammer candlestick pattern which hints at a strong up move in coming sessions.
Mphasis
BUY, CMP: Rs 2,061.45, TARGET: Rs 2,165, SL: Rs 2,020
The stock has shown a remarkable rally in the past many months and the trend of the stock is still in the rising direction. The Higher high and higher low chart formation is evident in the counter, additionally, the rise in volume activity in the last few days is indicating bullish continuation pattern in the near future.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)
