Jul 18, 2023
Nifty trades near 200-day SMA, intraday formation positive, support now at 17100; Buy HCL Tech, L&T for gains
By Shrikant Chouhan
The benchmark indices bounced back sharply, the NSE Nifty 50 ended 246 points higher while the BSE Sensex settled 776 points up. Among sectors, all the major sectoral indices were traded in the green but reality and energy gained the most, rallying over 3 per cent. Technically, once again the indices reclaimed the 17000/57000 mark and succeeded to close above the 50-Day SMA which looks grossly positive. After a promising pullback rally, the index is trading near its 200-Day SMA. For the short term traders, the support has shifted to 17100/57000 from 17000/56700. We are of the view that the intraday formation is positive and it is heading towards 17300-17350/57600-57800. On the flip side, quick intraday correction is not ruled out, if the indices trade below 17100/57000. Below the same, these may retest the level of 17050-17000/56800-56700.
Post correction of the last few sessions the stock has formed a reversal candlestick formation near its support zone. Moreover, closing above its short-term moving average should result in a bullish trend for the stock in the near term.
HCL TechnologiesBUY, CMP: Rs 1,094.3, TARGET: Rs 1,150, SL: Rs 1,070
The stock had been downtrend after hitting the double top formation and thereafter it entered into an accumulation phase near its important support area. Finally, a strong base is formed which indicates resumption of a bullish uptrend in the coming horizon.
L&T (Larsen & Toubro)BUY, CMP: Rs 1,699.95, TARGET: Rs 1,790, SL: Rs 1,660
On a broader time frame, the stock had been in a strong uptrend move however the recent price correction from its supply zone has plunged the counter to its important retracement support area. As a result, the pullback rally is very likely for further up move in the coming sessions.
Canara BankBUY, CMP: Rs 235.55, TARGET: Rs 250, SL: Rs 228
After a strong upward movement, the counter witnessed some profit booking. There is a momentary pause in the uptrend. However, it seems that a strong reversal is very likely from the double bottom support zone on the daily chart for further upward momentum.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own.)
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