By Shrikant Chouhan
The benchmark indices continued positive momentum for the third day in a row, the Nifty ended 49 points higher while the Sensex was up by 152 points. Among Sectors, the Media index was the top gainer, rallying over 3% whereas intraday profit booking was seen in banking and selective Auto stocks. Technically, after a sharp reversal, the index is comfortably trading above 50 and 20-day SMA (Simple Moving Average), and on intraday charts it has consistently formed a higher bottom formation, which is largely positive. For the trend-following traders now, 19,500 would be the sacrosanct support zone. Above the same, the index could move up to 19,620-19,650. On the flip side, below 19,500 bulls may prefer to exit from the trading long positions. Below 19,500 the index could slip to 19,450-19,420.
Bajaj Auto
BUY | CMP: Rs 4,705 | TARGET: Rs 4,940 | SL: Rs 4,610
The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range-bound mode, which indicates for accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
Bharti Airtel
BUY | CMP: Rs 867 | TARGET: Rs 882 | SL: Rs 847
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 multiple support zone. Recent reversal formation with decent volume activity indicates the counter is further gaining bullish traction. Hence, we expect the uptrend to resume from the current levels.
L&T Finance Holdings
BUY | CMP: Rs 130.05 | TARGET: Rs 137 | SL: Rs 127
The stock has shown a remarkable rally from the lows recently, and the trend of the stock is still in the rising direction. The higher high and higher low series on daily chart formation is evident in the stock. Hence, the formation is indicating a bullish continuation pattern to continue in the near term.
(Shrikant Chouhan, Head of Equity Research (retail), Kotak Securities. Views expressed are the analyst’s own. Please consult your financial advisor before investing.)
