By Shrikant Chouhan
On the monthly expiry day, the benchmark indices corrected sharply. The Nifty ended 94 points lower, while the Sensex was down by 256 points. Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels, but the PSU Banks and Oil & Gas indices lost the most, shedding over 1 percent. Technically, after the dismissal of 19,320, the selling pressure intensified. On intraday charts, the index consistently faces selling pressure at higher levels, and on daily charts, it has formed a bearish candle, which is largely negative. We are of the view that the larger texture of the market is still range-bound, and for the traders now, 19,220 would act as a sacrosanct support zone. If the index trades above the same level, then it will bounce back to 19,320–19,380. On the flip side, below 19,220, the selling pressure is likely to accelerate. Below this, the market could slip to 19,150–19,125. The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.
Oberoi Realty
BUY | CMP: Rs 1,125 | TARGET: Rs 1,190 | SL: Rs 1,090
The stock witnessed a gradual decline from the higher levels in the past few sessions. However, the downside seems to be restricted due to the overall strong bullish sentiment. Moreover, the recent sloping channel breakout formation along with incremental volume activity on the daily scale suggests an uptrend to resume from the current levels.
Mahindra & Mahindra
BUY | CMP: Rs 1,585 | TARGET: Rs 1,660 | SL: Rs 1,545
For the past few weeks, the stock has been in a range-bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed an ascending triangle chart pattern. The structure indicates a breakout from the current levels and the beginning of a new upmove in the counter.
HCL Tech
BUY | CMP: Rs 1,180 | TARGET: Rs 1,240 | SL: Rs 1,155
The counter had been in a declining trend in the past few sessions. However, at present there is a pause in its downward movement due to its demand zone. Moreover, the counter is available near its important retracement levels, which could act as a strong base in the coming horizon. Hence, a bullish trend is expected to resume from the current levels.
(Shrikant Chouhan, Head of Equity Research (retail), Kotak Securities. Views expressed are the analyst’s own. Please consult your financial advisor before investing.)
