– By Shrikant Chouhan
On last Tuesday, the benchmark indices witnessed narrow range activity, the Nifty ends 34 points lower while the Sensex was down by 40 points. Among Sectors, Media and Reality indices corrected sharply, both the indices shed over 1 percent whereas some buying interest was seen in banking and financial stocks. Technically, from last three days the market is taking support near 16900/57450 and at the same time it is consistently taking resistance near 17100/58100 level. We are of the view that, 16900/57450 would act as a key support level for the bulls. Above which, the index could retest the level of 17050-17100/57900-58000. On the flip side, a fresh sell off possible only after dismissal of 16900/57450 below which, the index could slip till 16820- 16800/57200-57100.
The stock had underperformed in the past many weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range bound mode, which indicates for accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
Post correction of the last few sessions the stock has formed a reversal candlestick formation near its support zone. Moreover, closing above its short-term moving average should result in a bullish trend for the stock in near term.
HDFCAMC: BUY, CMP 1685, TARGET 1770, SL 1650
After a long-term correction, eventually the stock took the support near its demand zone. Post reversal, it has formed double bottom formation and bounced back sharply along with decent volume activity. Looking at the overall pattern it offers buying opportunity for the positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue in the coming horizon.
ICICIBANK: BUY, CMP 857, TARGET 900, SL 840
The counter is into a gradual up move with a higher low series formation. Additionally, it has formed a Cup and Handle chart pattern with incremental volume activity. Therefore, the breakout of the range for moving further upside is very likely to occur from the current levels.
(Shrikant Chouhan is the Head of Equities research (retail) at Kotak Securities Ltd.)