By Shrikant Chouhan
On Tuesday, the benchmark indices bounced back sharply, the Nifty ended 86 points higher while the Sensex was up by 261 points. Among Sectors, almost all the major sectoral indices witnessed buying interest at lower levels. Technically, after a gap up opening the market hovered between 19,775 to 19,850 levels. However, the short-term texture of the market is still in to the positive side. We are of the view that, as long as the index is trading above 19750 the uptrend formation is likely to continue. Above the same, the index could continue the rally till 19,900-19,935. On the flip side, below 19,750 uptrend would be vulnerable. Below the same, the sentiment could change. Below 19,750, the market could slip till 19,700-19,675.
Bharti Airtel
BUY | CMP: Rs 954 | TARGET: Rs 1,000 | SL: Rs 930
After a remarkable rally of the past few sessions, the stock went into a consolidation mode. At present, the structure is indicating at bullish continuation chart formation along with a decent volume activity. Hence, the formation indicates at bullish trend to resume from the current levels.
IndusInd Bank
BUY | CMP: Rs 1,435 | TARGET: Rs 1,500 | SL: Rs 1,405
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 rectangle chart pattern. Therefore, the recent price action indicates a likely breakout for a new leg of up move in the near term.
Bajaj Auto
BUY | CMP: Rs 5,143.10 | TARGET: Rs 5,400 | SL: Rs 5,040
The counter is into a gradual up move with a higher low series on the daily chart. Additionally, it has formed a Cup and Handle chart pattern with a decent volume activity. Therefore, the breakout of the range for moving further upside is very likely to occur in the coming horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
