By Shrikant Chouhan
The benchmark indices witnessed revenue reserving at larger ranges, the Nifty 50 ended 81 factors decrease whereas the BSE Sensex was down by 407 factors. Among sectors, Reality and Media continued the optimistic momentum whereas banking and Energy shares registered revenue reserving at larger ranges. Technically, on final Thursday the market opened with a spot down and recovered sharply however yet one more time it took the resistance close to 16700/55925 and attributable to revenue reserving at larger ranges corrected sharply. A double high formation on intraday charts and Doji candlestick formation on every day charts point out additional weak spot from the present ranges.
We are of the view that, within the close to future 16700/55925 would act as a key resistance degree for the merchants. Below which the index may retest the 16450-16400/54900-54700. On the flip aspect, a contemporary uptrend rally is feasible solely after the 16700/55925 vary breakout. Above which it may transfer as much as 16775/56200. The bigger texture of the market remains to be in to the optimistic aspect, Hence, Contra merchants can take an extended guess close to 16400/54700 with strict 16350/54550 help cease loss.
Technical shares to purchase
Bharti Airtel
BUY, CMP: Rs 700.2, TARGET: Rs 740, SL: Rs 685
Post short-term correction from the upper ranges the downward momentum has taken a pause close to its demand zone. On every day charts, the counter has fashioned a rounding backside formation and reversed its pattern. The formation suggests a revival of the uptrend from the present ranges for additional bullish motion.
Manappuram Finance
BUY, CMP: Rs 95.55, TARGET: Rs 101, SL: Rs 92
The counter had been in a declining pattern previously many months. However, lately there’s a reversal formation in its downward motion from its a number of help ranges. As the inventory is on the market close to to its help space which may act as a robust base, and concurrently making it a good candidate when it comes to danger and reward.
Godrej Properties
BUY, CMP: Rs 1,399.5, TARGET: Rs 1,470, SL: Rs 1,370
The inventory was right into a sloping channel from the previous few weeks. Eventually, its downward transfer stopped close to the vital help zone. The robust rebound and up to date pattern line breakout confirms bullish momentum to stay within the coming time horizon.
ITC
BUY, CMP: Rs 270.65, TARGET: Rs 285, SL: Rs 265
The counter is buying and selling in a rising channel continuously. The larger excessive and better low chart formations are obvious within the counter. Additionally, pattern indicators equivalent to MACD and ADX are exhibiting bullish energy. Therefore, upward motion from the present degree could be very more likely to stay within the close to time period.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”