Nifty to hit 18150, Sensex may reach 61100 amid bullish market texture; Reliance, Cipla strong on charts

Nifty to hit 18150, Sensex may reach 61100 amid bullish market texture; Reliance, Cipla strong on charts

By Shrikant Chouhan

Bulls continued the positive momentum for the third day in a row, the Nifty 50 index ended 52 points higher while the BSE Sensex gained 221 points. On the sectoral front, strong buying interest was seen in Energy, IT, and Reality stocks while metal stocks witnessed technical selloff. Technically, the Nifty is consistently forming a higher bottom and higher top formation which suggests a further uptrend. The texture of the market is bullish but one quick intraday correction is possible if the index succeeds to trade below 18000. For the trend following traders, now 16980/60400 would be the trend decider levels for Nifty and Sensex. Trading above the same, the uptrend in Nifty and Sensex is likely to continue till 18100-18150 and 60900-61100. On the flip side, below 16980/60400 the chances of retesting 17900-17875 and 60100-59900 would turn bright.

The stock was into a sloping channel after hitting the highs of around 950, eventually, its downward move got paused near the retracement support zone, moreover, close above the short-term moving averages on the daily chart is suggesting a bullish trend to resume in the coming horizon.

Reliance Industries Ltd (RIL)BUY, CMP: Rs 2,455.55, TARGET: Rs 2,580, SL: Rs 2,405

The counter is into a gradual up move with a higher low series formation with incremental volume, additionally, on the daily chart, the counter has formed an Inverse Head and Shoulder chart pattern which hints for a strong breakout move in the near term.

Havells IndiaBUY, CMP: Rs 1,357.85, TARGET: Rs 1,430, SL: Rs 1,330

For the past few weeks, the counter is trading in a symmetrical triangle chart pattern along with decent volume activity, furthermore, on the daily scale, a rebound is seen from its important retracement levels which suggest that the counter has enough potential for upside from the current levels.

Tata Consumer ProductsBUY, CMP: Rs 738.65, TARGET: Rs 780, SL: Rs 720

After the declining trend of almost four months, the counter has taken a breather and it has reversed its trend from the support zone, on the intraday and daily chart the counter has formed a Cup and Handle chart pattern, therefore, the breakout of the range for moving further upside is very likely to occur in the near term.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own.)