By Shrikant Chouhan
The benchmark indices witnessed revenue reserving at greater ranges, the NSE Nifty 50 ended 153 factors down whereas the BSE Sensex was down by 567 factors. Among sectors, Reality, Media, IT and FMCG shares witnessed correction sharply, down over 1.5 per cent whereas shopping for curiosity was seen in selective Energy shares. Technically, on Tuesday, the Nifty/ Sensex broke the essential help degree of 16450/55300 and succeeded to shut under the identical, which is essentially unfavorable.
In addition, it additionally fashioned bearish candles that additionally supported short-term weak point. We are of the view that the market construction is weak however mildly oversold. For the merchants, so long as the indices are buying and selling under 16500/55400 the short-term texture stays weak, under which the correction wave is prone to proceed until 16300/54800 additional draw back can also proceed which may drag the index as much as 16225/54500. On the opposite aspect, above 16500/55400 likelihood of hitting 16600-16650/54700-54850 would flip vibrant.
Technical shares to purchase
Mahindra & Mahindra (M&M)
BUY, CMP: Rs 1,042.55, TARGET: Rs 1,100, SL: Rs 1,020
After the sharp up transfer, the inventory is buying and selling in a range-bound motion properly above its quick time period shifting averages. As a end result, the formation of a Flag chart sample on the each day scale is fashioned which factors to bullish motion to renew within the coming horizon.
Bharat Electronics Ltd (BEL)
BUY, CMP: Rs 245.8, TARGET: Rs 260, SL: Rs 240
The counter is right into a gradual up transfer with the next low sequence on the each day chart. Additionally, it has fashioned a Cup and Handle chart sample with a good quantity. Therefore, the breakout of the vary for shifting additional upside could be very prone to happen within the close to time period.
PVR
BUY, CMP: Rs 1,793.7, TARGET: Rs 1,890, SL: Rs 1,755
On the each day timeframe, after the sharp up transfer, the inventory witnessed gradual value decline. However, reversal is seen from its essential retracement help zone. The formation signifies the inventory could be very prone to resume its new leg of the uptrend from the present ranges.
PETRONET
BUY, CMP: Rs 229.1, TARGET: Rs 242, SL: Rs 222
The inventory is buying and selling right into a rising channel sample forming the upper lows sequence repeatedly. The sturdy bullish exercise on the each day chart recommend that the counter is prone to keep bullish continuation formation 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”