Nifty index closed on a flat note on Tuesday in a volatile trading session
Nifty index closed on a flat note on Tuesday in a volatile trading session. The index managed to hold the support of 8,580 and witnessed a strong recovery of more than 50 points in last hour of the sessions by hitting its fresh intraday high. It has been making higher lows and respecting to its support trend line by connecting recent lows of 8,476, 8,490, 8,518, 8,540 and now at 8,580 zones. The 50-share index formed a Bullish Hammer candle near to support zones which is giving a sign of positive momentum for heading towards upper band of the trading range.
Now it has to cross and hold above 8,665 zones to witness an up move towards 8,700 then 8,728 zones while on the downside 8,580 zones is likely to act as a major support for next 2-3 trading sessions. India VIX fell down by 2.41 per cent at 13.90 and falling volatility started to support bulls for a buy on decline strategy in the market.
BUY BANK OF BARODA: The stock has been making higher lows from last six trading sessions and holding the strength even after a range bound market move. It has recently bottomed out with the support of Rs 145 and surpassed the immediate hurdle of Rs 160 zones. It is forming a positive price pattern and holding above all the moving averages. So, one can buy the stock with the stop loss of Rs 156.50 for the upside immediate target of Rs 168.50 levels.
BUY HCL TECHNOLOGIES: The stock has taken support near to Rs 765 zones after the profit booking decline of last 10-12 trading sessions. It has negated its formation of making lower lows of last six trading sessions. It made bottom near to Rs 765 zones which earlier used to be a crucial hurdle in the month of June and July, thus forming strong price pattern of shifting of resistance to support zones. We are recommending buying the stock with the stop loss of Rs 763 for the upside target of Rs 811 levels.
BUY ZEEL: The stock has managed to hold the support near to 497-500 zones and recorded a fresh life time high by crossing previous hurdle of 518 zones. It has seen a rise in trading volume with short covering activities which is also supporting our positive stance on the counter. Thus recommending buying the stock with the stop loss of Rs 501 for the upside target of 532 levels.
SELL APOLLO HOSPITAL: The stock has been falling down from last six sessions and broken the support of 1370 zones. It has a range bound move and turning back from its upper band of the trading range. We have seen fresh built up of short position which may continue to push the stock to lower levels. One can sell the stock on a small bounce back move with strict stop loss of 1405 for the downside target of 1325 levels.
(The author is derivatives analyst, equity research at Anand Rathi Financial Services)