NEW DELHI: After four days of massive break, the market started the week on a miserable note, taking unfavorable global cues into consideration. The weakness extended as the day progressed and in the process, the Nifty went on to slide below 17100. Fortunately, some respite was seen at lower levels and due to modest recovery towards the end.
“Due to this unexpected gap down, the Nifty is back to the crucial support zone of ‘200-day SMA’ placed around 17,100. In fact, the make or break point of 17000 is not far from this zone and hence, Nifty has approached its important cluster,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
“We remain hopeful of some recovery till the time 17000 is defended successfully. On the flip side, today’s bearish gap area of 17250 – 17450 is likely to act as an immediate hurdle now. Let’s see how things pan out going ahead. As of now, we expect the index to remain in the range of 17000 – 17450 for at least a couple of days, before breaking out of this congestion zone.”
Below are key recommendations for Tuesday:
Chambal Fertilisers
Buy between Rs 510-505
Stop loss: Rs 48
Target: Rs 530-540
The stock has witnessed a breakout on the daily chart with volumes indicating strength in the near term. The stock saw a massive long position built up in the future segment. The momentum oscillators are showing sharp reversal on the lower time frame.
Analyst: Kunal Shah, LKP securities
SBI Life Insurance
Buy between Rs 1,170-1,165
Stop loss: Rs 1120
Target: Rs 1,220-1,230
The stock has given a breakout from an inverse head and shoulder pattern. The momentum is likely to continue on the upside in the near term. The stock has been one of the outperformer in the insurance space.
Analyst: Kunal Shah, LKP securities
JK Paper
Buy above Rs 365
Stop loss: Rs 355
Target: Rs 380
The stock closed at above the 50 and 100 day moving average
Analyst: Vijay Danotiya, CapitalVia Global Research
EID Parry
Buy above Rs 514
Stop loss: Rs 500
Target: Rs 550
The stock is making consolidation in 15 minute time frame and trading near the neckline at 1 day timeframe.
Analyst: Vijay Danotiya, CapitalVia Global Research.
JSW Steel
Buy above Rs 767
Stop loss: Rs 755
Target: Rs 790
The stock has shown a trendline break and a volume.
Analyst: Vijay Danotiya, CapitalVia Global Research.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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