What a day of trade it has been for the market participants and one full of surprises. After an unexpected trading halt due to technical glitch, when the NSE finally opened with revised trading hours from 3.45 to 5 pm, little did the market participants know that the headline indices will rise almost 2% all in a matter of one hour of the trading window.
Rally was mainly led by short covering and fresh long build up in the banking stocks, following a tweet from the FM, which said the embargo was lifted on grant of government business to private banks, meaning private banks can now participate in government businesses. This triggered a massive 4% rally in the Nifty Bank.
PSU basket and FMCG after a long pause also witnessed good buying interest. Today’s sudden rally has reversed the downtrend. If bulls manage to take the Nifty50 index beyond 15,000 levels in tomorrow’s expiry session, the rally could extend to levels of 15200. On the downside, 14,850 will act as a support zone being the 20-DMA.
Equity recommendation
HDFC Life: BUY
CMP: Rs 719
Target: Rs 760
Stop loss: Rs 695
The stock is on the verge of a breakout from a consolidation Triangle pattern neckline placed at 721. A successful breakout on healthy volumes will trigger a resumption of the uptrend. Further, the stock has been making higher highs and higher lows confirming bullishness. The RSI has turned higher after taking support at the neutral level of 50, suggesting a strong up move is in action.
L&T Housing Finance: BUY
CMP: Rs 103
Target: Rs 112
Stop loss: Rs 98
The Stock has turned upwards after breaking out of an Ascending Triangle pattern neckline. Further, volumes have been good, leading up to a breakout, suggesting bullishness. RSI is also favouring an extended uptrend.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
