Caution alert for investors
Post 77,000 breakout, the market could rally up to 77,300-77,400pts; On the other side, below 76,300 the index could retest the level of 76,000-75,800
image for illustrative purpose
Mumbai: The benchmark indices continued non-directional activity for two days in a row, NSE Nifty ends 6 points higher, while BSE Sensex was down by 33 points. Among sectors, Media index outperformed rallied 1.83 per cent, whereas intraday profit booking were seen in Pharma and FMCG stocks. Technically, after a muted opening the index witnessed lacklustre activity. The short-term texture suggesting 77,000 would be the key resistance zone for the short-term traders, while 76,300 would act as a crucial support zone.
“We are of the view that, post 77,000 breakout the market could rally up to 77,300-77,400 points. On the other side, below 76,300 the index could retest the level of 76,000-75,800,” says Shrikant Chouhan of Kotak Securities.
Benchmark Sensex erased all its mid-session gains as late profit-taking in select banking and FMCG stocks weighed on sentiment despite strong buying in telecom, oil & gas and realty stocks. Weakness in Asian and European indices too kept the mood cautious.
“The market has already rallied sharply in recent sessions and indices are at all-time highs. Hence, investors would be watchful before increasing their exposure,” says Prashanth Tapse, senior V-P (research), Mehta Equities.
STOCK PICKS
NBCC
Rating: Buy| CMP: 156.60 | SL: 148 | TARGET: 175
The stock has given a strong breakout from its symmetrical triangle pattern formation on its daily time frame charts. With the volumes in Tuesday’s trading session being almost six times its average (30-day) traded volume, and the stock giving a decisive closing above the 156 mark, the stock seems set for a rally towards the target of 175 and above. A stop loss should be set at 148 to manage risk well on the trade.
GuficBioSciences
Rating: Buy| CMP: 369.50 | SL: 355 | TARGET: 412.50
The stock has given a strong breakout above its all-time high resistance mark of 364.90 and is seen re-testing the breakout level. With the stock having strong anchor VWAP support near the 360 mark, a strict stop loss should be kept around 355 to manage risk well. On the upside, we can expect potential targets of 412.50 and above over the next few weeks in Gufic Bio Sciences.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
