By Shrikant Chouhan
Benchmark indices BSE Sensex and Nifty 50 recorded risky worth motion on Monday. Even although Nifty 50 / BSE Sensex opened under the psychological stage of 17000/56500, they closed at 17069/56975, which is optimistic for the brief time period development of the market. Fresh shopping for was seen in HDFC Bank and Housing Development Finance Corporation (HDFC), whereas profit-booking was seen in auto and know-how shares. Technically, the market is holding above the extent of 16800, however on the similar time, it’s failing to indicate sustained momentum. In brief, the market is consolidating inside a broad buying and selling vary of 17400-16800.
We might not see any trending transfer out there except the market is crossing the 17400 stage or breaking the 16800 stage. It is advisable to be a stock-specific dealer out there somewhat than specializing in the index. An in depth under the 16800 stage shall be unfavorable for the market. The volatility index is effectively above the 20 stage, which is a sign that the market is about to interrupt the buying and selling vary within the close to future.
Technical shares to purchase
ITC
BUY, CMP: Rs 263.15, TARGET: Rs 280, SL: Rs 255
After exceptional rally up to now few weeks the inventory went into a spread sure mode. At current, the inventory is seen popping out of the consolidation section with a spread breakout. And therefore the formation signifies an additional uptrend from the present ranges.
Muthoot Finance
BUY, CMP: Rs 1,273.65, TARGET: Rs 1,340, SL: Rs 1,245
The counter had been in a declining development up to now many months. However, at current there’s a pause in its downward motion resulting from its robust a number of help ranges. As the inventory is accessible close to to its demand zone which might act as a powerful base, concurrently making it a good candidate when it comes to threat and reward.
Ultratech Cement
BUY, CMP: Rs 6,679, TARGET: Rs 7,020, SL: Rs 6,540
On the month-to-month scale, the inventory has offered a strong rally, after a breather of few buying and selling periods, it has taken a pause within the momentum inside a spread. Currently, the counter is buying and selling close to the decrease boundary of the vary which signifies reversal from present ranges.
State Bank of India (SBI)
BUY, CMP: Rs 491, TARGET: Rs 515, SL: Rs 480
The inventory witnessed gradual worth decline from the upper ranges, nonetheless, its down transfer took a pause with a hammer candlestick sample. The counter has fashioned a reversal formation with respectable quantity exercise and retreated from the decrease ranges for a contemporary leg of uptrend in coming buying and selling periods.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the creator’s personal.)
Source: www.financialexpress.com”