By Shrikant Chouhan
On Tuesday, profit booking continued at a higher level, the benchmark index Nifty 50 ended 42 points lower while the BSE Sensex lost 153 points. Among sectors, profit booking was seen in Oil and Gas stocks whereas some buying interest was seen in selective reality stocks. Technically, after a sharp decline, the NSE Nifty 50 is consolidating within a range of 15700- 15850 and BSE Sensex in 52600-53000 range. The short term formation is still on the weak side. And we are of the view that, if indices slip below the level of 15700 and 52600 they could hit the level of 15600-15550 and 52300-52100. On the flip side, 15850 for Nifty and 53000 for Sensex would act as an immediate hurdle for the bulls. Above which these could move up to 15950-16000 and 53300-53500.
After the recent correction in the counter from the higher levels the downward momentum has taken a pause. On daily charts, the counter has formed a rounding bottom chart formation and reversed its trend. The formation suggests a revival of the uptrend from the current levels for further bullish movement.
HDFC Bank BUY, CMP: Rs 1,312, TARGET: Rs 1,380, SL: Rs 1,280
The counter had been in a declining trend in the past many sessions. However, at present the stock is available near to its demand zone which could act as a strong base in the coming horizon. Hence reversal from the current levels with a favorable risk and reward is very likely in the near term.
SiemensBUY, CMP: Rs 2,400.55, TARGET: Rs 2,520, SL: Rs 2,350
On the daily chart, post reversal from its multiple support zone the stock is into a gradual up move in an rising channel pattern. The texture of the chart pattern suggests upward movement from the current level is very likely to continue in the coming sessions.
L&T (Larsen & Toubro) BUY, CMP: Rs 1,544.65, TARGET: Rs 1,620, SL: Rs 1,510
After hitting the recent highs of 1660, the counter has seen a vertical slide on the downside and is into oversold territory. In addition, it has formed a double bottom chart formation near the support zone with decent volume activity. Hence the structure indicates a trend reversal in the coming trading sessions.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)