The index is likely to hold the ground on the higher side till Budget unfolds and Nifty is likely to scale up towards 11200-11300 in the pre-budget rally.
The market witnessed a lot of action on the largecap front especially in IT, Banking and Metal sector which led Nifty to scale up above 11,000 and Sensex above 36,000 level.
Quarterly earnings growth is also on expected line which is giving comfort to the bulls. The market looks little nervous ahead of the Budget especially on LTCG front and fiscal consolidation roadmap.
Most of the midcap stocks have witnessed profit booking and midcap index has corrected significantly ahead of the Budget.
We feel that the index is likely to hold the ground on the higher side till Budget unfolds and Nifty is likely to scale up towards 11200-11300 in the pre-budget rally.
Note: SGX Nifty closed 63 points higher at 11,137.
One should look to buy the stocks from the sectors which have shown a lot of expectation buildup for the forthcoming budget.
Sectors which are bullish on their long-term charts and have witnessed outperformance viz., sectors like Cement, Infrastructure, FMCG, and Automobiles are likely to exhibit bullishness ahead of budget as the near/short term charts are sustaining above breakout levels.
Weekly and Monthly charts look positive and are forming a higher top, higher bottom formation indicating sustained uptrend. Weekly and monthly strength indicators are in positive territory, signifying sustained strength ahead.
Weekly chart pattern suggests that Nifty is likely to continue its uptrend in the short term and it can move towards 11,250-11,400 levels. However, on the downside 11,000-10,800 is likely to act as good support if any corrective action happens in the near-term
Top 3-5 stocks which are looking attractive at current levels based on technical?
A) Technically private banks, Metal, FMCG, Fertilizer and IT space looks attractive for near-term play. We like HDFC Bank, Kotak Bank, VEDL, TATA Steel, ITC, HCL Tech, TechM, NIIT Tech from the above-mentioned space.
Escorts: CMP Rs 836.8| Target Rs 905| Stop Loss Rs 790| Time 8-15 days| Return 8%
Escorts is in up-trend across all the time frames forming higher top - higher bottom formation. Since June 2017, the stock was in major consolidation mode within Rs820-590 band on the weekly chart.
It gave breakout at Rs820 levels and is sustaining above the same. On the daily chart, the stock has given a breakout of up sloping trend line at Rs825 levels.
The stock is also sustaining above its 20, 50 and 100 and SMA which supports bullish sentiments ahead. Both weekly and monthly strength indicator such as RSI along with the momentum indicator Stochastic are in bullish territory.
Both are sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to 890-905.
Vedanta Ltd: CMP Rs 345.4| Target Rs 370-376| Stop Loss Rs 325| Time 8-15 days| Return 9%
The most prominent observation on the price chart of Vedanta is that the entire consolidation underway since November 2017 till date has formed a Cup and Handle formation.
The breakout of this formation is witnessed at 345 levels on the daily chart. The stock is sustaining above its 20, 50, 100 & 200 day SMA which supports bullish sentiments ahead.
On the volumes front, the stock has witnessed a significant rise in breakout level indicating increased participation on the rally.
Both weekly & monthly strength indicator RSI is in bullish territory and sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to 370-376.
Sudarshan Chemical Industries Ltd: CMP Rs 465.4| Target Rs 490-500| Stop Loss Rs 530| Time 8-15 days| Return 7.5%
The most prominent observation on the price chart of Sudarshan Chemical Industries is that the entire sideways consolidation underway since May 2017 till date has taken the shape of a "Horizontal Channel" continuation pattern formation.
The breakout of the "Horizontal Channel" continuation pattern formation was witnessed at 430 levels. The measuring implication of the price pattern i.e. the range of the consolidation (430-360 = 70 points) projected from the breakout level of 430 provides upside target of 490-500 approximately.
Stocks is sustaining above its 20, 50, 100 & 200 day EMA which supports bullish sentiments ahead. The stock is moving in higher Top higher Bottom formation across all the time frame indicating sustained uptrend. Volumes are significantly rising around breakout level.
Adani Ports: CMP Rs 436| Target Rs 460-470| Stop Loss Rs 418| Time 8-15 days| Return 7.8%
The stock has witnessed the breakout of symmetrical triangle pattern breakout on weekly chart at427 level. The stock was consolidating in range of 380-425 range since last three months.
The breakout of the Triangle pattern suggests stock can move towards 460-470 level in the short term. The stock is sustaining above all its important moving averages which support bullish sentiment ahead.
The weekly and the daily strength indicators are in positive territory which indicates the bullish trend to continue in short term.
MORE WILL UPDATE SOON!!
0 comments:
Post a Comment