By Shrikant Chouhan
Last Tuesday, on the backdrop of weak global sentiments , the Indian benchmark indices corrected sharply, the Nifty ended 116 points lower while the Sensex was down by 316 points. Among Sectors, profit booking was seen on Energy, Auto and Metal stocks whereas some buying was seen in selective FMCG stocks. Technically, after an early morning selloff the index took the support at 19,480. On daily charts, the index has formed a bearish candle and on intraday charts, it is still holding lower top formation, which is largely negative. We are of the view that, the short term texture of the market is weak but oversold, hence we could see one quick pullback rally in the near future. For the bulls now, 19,580 could be the immediate resistance zone. Above which, the index could move up till 19,700-19,725. On the flip side, 19,450 and 19,480 would act as a strong support zone for the traders. Below 19,450, the selling pressure is likely to accelerate. Below the same, the index could slip till 19,375-19,350.
Hindustan Unilever
BUY I CMP Rs 2,467.65 I TARGET Rs 2,590 I SL Rs 2,420
The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the correction from higher levels, the stock is currently trading in a range bound mode, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.
Godrej Properties
BUY I CMP Rs 1,559 I TARGET Rs 1,640 I SL Rs 1,525
The stock witnessed short-term correction 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 indicate the stock is further gaining the bullish traction. Hence, we expect the uptrend to resume from the current levels.
L&T Finance Holdings
BUY I CMP Rs 134.8 I TARGET Rs 142 I SL Rs 131
On the weekly scale, the counter is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggests that the counter is likely to maintain bullish continuation formation in the coming horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)
