By Shrikant Chouhan
The Nifty hovered between the range of 18130-18180 on Tuesday. on daily charts, the index has formed a small candle while on intraday charts it is still holding a higher bottom formation which is broadly positive. We are of the view that the market texture is bullish but mildly overbought, hence we could see range-bound activity in the near future. For traders now, buying on dips and sell on rallies would be the ideal strategy. For the short term, 18050-18000/61000-60800 would be the key support zone for Nifty and Sensex while 18200-18250/61500-61700 would act as an immediate hurdle for the bulls. However, below 18000/60800 uptrend would be vulnerable. Below the same, traders may prefer to exit from the trading long positions.
JUBLFOOD: BUY – CMP: Rs 463 – TARGET: Rs 487 – SL: Rs 453
Post decline from the levels of 500 the stock went into a range-bound movement. Recently, strong bullish activity is spotted near the multiple support zone. Additionally, the formation of a bullish Marubozu candlestick pattern with a good volume suggests a strong up move in the counter.
HCLTECH: BUY – CMP: Rs 1069 – TARGET: Rs 1122 – SL: Rs 1045
The counter is trading into a range-bound mode for the last few sessions, and presently the counter is near the breakout line of the symmetrical triangle chart pattern. Hence, the recent price action indicates a strong breakout for a new leg of up moves in the coming trading sessions.
M&M: BUY – CMP: Rs 1234 – TARGET: Rs 1295 – SL: Rs 1205
On the daily chart, post reversal from its support zone the stock is into a gradual up move and is into a rising channel pattern. The texture of the chart pattern suggests upward movement from the current level is very likely to continue in the coming horizon.
(Shrikant Chouhan is Head of Equity Research (Retail) at Kotak Securities Ltd. Views expressed are the author’s own.)