By Shrikant Chouhan
The market registered an especially risky session, the Nifty/ Sensex closed 63/243 factors decrease. The Nifty/ Sensex did not maintain above the 14500/48400 resistance mark and attributable to constant promoting strain at larger ranges together with tepid international cues the benchmark index corrected sharply. Amongst sectors, revenue reserving was seen in IT shares whereas, Auto, Pharma and selective Media shares witnessed shopping for curiosity.
We’re of the view that, at the moment the Nifty / Sensex hovering within the vary of 14600 to 14400/ 47500-49000 worth vary and the feel of the sample recommend slim vary exercise prone to proceed within the close to future. Technically, the index has fashioned a decrease prime formation which is broadly adverse for the market. The intraday chart recommend correction wave prone to proceed if the Nifty/ Sensex succeed to commerce under 14400/48100 and under the identical, the correction wave will proceed as much as 14200-14130/ 47350-47000 On the flip aspect, above 14400/48100 we will count on fast pullback rally until 14475-14525/ 48300-48500.
Jindal Metal and Energy Ltd
BUY, CMP: Rs 431.55, TARGET: Rs 455, SL: Rs 420
On the every day time-frame, after the sharp up transfer, the inventory was right into a consolidation section and eventually, it has given a breakout from its Flag chart sample with incremental quantity exercise indicating additional up transfer within the coming horizon.
Solar Pharmaceutical Industries Ltd
BUY, CMP: Rs 645.15, TARGET: Rs 675, SL: Rs 630
The inventory is buying and selling right into a rising channel sample making the upper prime and better backside sequence on weekly and month-to-month charts, subsequently all main technical pattern indicators reminiscent of MACD and ADX are robust and intact. Thus upward motion from the present stage could be very prone to stay within the close to time period.
SELL, CMP: Rs 1,297.65, TARGET: Rs 1,230, SL: Rs 1,330
The inventory is in a downtrend the place the bears are fairly robust for the time being as bulls aren’t capable of achieve power, on the month-to-month scale as nicely the inventory is buying and selling under its rising pattern line and short-term transferring averages which signifies bearishness within the counter.
RBL Financial institution
SELL, CMP: Rs 174.55, TARGET: Rs 165, SL: Rs 180
Bearish continuation formation is obvious within the counter as it’s constantly making decrease excessive and decrease lows, therefore the general construction of the inventory recommend that it’s heading to its earlier demand zone on the draw back
(Shrikant Chouhan is Govt Vice President (Fairness Technical Analysis), Kotak Securities. Views expressed are the writer’s personal.)