By Shrikant Chouhan
The benchmark indices bounced back sharply, the NSE Nifty 50 ended 289 points higher and the BSE Sensex gained 934 points. Among sectors, all the major sectoral indices traded in the green but Media, Metal and PSU Banks stocks outperformed. Technically, post reversal formation, on Tuesday, the market opened a gap up and held strong momentum throughout the day. On daily charts, the NSE Nifty 50 index formed a promising bullish candle which supported further uptrend from the current levels. However, the medium term trend is still on to the weak side.For the traders, the support for Nifty/Sensex has shifted to 15500/52000 from 15250/51300. As long as indices are trading above 15500/52000 the chances of hitting 15750/52900 would turn bright. Further upside may also continue, which could lift the index up to 15850/53200. On the flip side, below 15500/52000 uptrend would be vulnerable.
Reliance Industries Ltd (RIL) BUY, CMP: Rs 2,584.1, TARGET: Rs 2,720, SL: Rs 2,530
On a broader time frame, the stock had been in a strong uptrend move. However, the recent price correction from its supply zone has plunged the counter to its important retracement support area. As a result, the pullback rally is very likely for further up move in the coming sessions.
Divis LaboratoriesBUY, CMP: Rs 3,599.5, TARGET: Rs 3,780, SL: Rs 3,520
The stock has underperformed in the past few sessions and it has witnessed a downtrend. However, in the recent past it entered into an accumulation phase near its important support area, which will act as a good strong base for the counter. Moreover, on a daily scale a reversal candlestick formation indicates the resumption of a bullish uptrend in the coming horizon.
Jubilant FoodWorksBUY, CMP: Rs 517.85, TARGET: Rs 545, SL: Rs 505
On the daily time frame, after the sharp up move, the stock witnessed gradual price decline. However, reversal is seen from its important retracement support zone. The formation indicates the stock is very likely to resume its new leg of the uptrend from the current levels.
Canara Bank BUY, CMP: Rs 182.45, TARGET: Rs 191, SL: Rs 177
The counter had been in a declining trend in the past many sessions. However, at present there is a pause in its downward movement due to its strong multiple support levels. As the stock is available near to its demand zone, which could act as a strong base, simultaneously making it a favorable candidate in terms of risk and reward.(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities. Views expressed are the author’s own.)