By Sameet Chavan Technical charts suggest an upward trend towards 11,30011,350 levels for the benchmark Nifty; while stocks such as Hero MotoCorp, Maruti, Lupin, Biocon, Equitas and MCX are expected to see potential upsides of over 5%, according to analysts.Where are We After an extended weekend, our markets opened flat despite SGX Nifty suggesting a gap-down opening on Tuesday.
In the last couple of days, the Nifty did not see any action, but we need to appreciate the fact that despite all Asian bourses correcting brutally on the last day, our markets managed to close safely above 11,000, which is highest weekly closing in six months.What is in Store In the last few days, the index was consolidating, and mid-caps and small-caps started attracting traders attention.
Due to all this positivity, the Nifty has confirmed a breakout from the Falling Trend Line on daily chart.
Thus, muted action in last two days should be construed as a pull back or a breather.
Further, if we observe the daily chart meticulously, we can see a formation of Megaphone pattern.
Recent supports of 10,583 and 10,585 being the base of the same and the higher trend line is extended towards 11,30011,350.
Hence, a move towards this important junction cannot be ruled out in the days to come.
Traders are advised to trade with a positive bias and expect 10,99410,840 to act as a strong support zone now.What should Investors Do At this juncture, we like Bajaj Finance which has resumed its uptrend after a long consolidation.
One can look to go long for a target of Rs 2,920 with a stop loss at Rs 2,695.
From the same sector, Bajaj Auto seems to have picked up a strong momentum.
We expect the northward rally to continue towards Rs 3,080 with a stop loss at Rs 2,894.
Also, it was good to see so many stocks from the cash segment showing some encouraging bounce-back.
Fromthis, we like ITD Cementation which is certainly gearing up for a strong up-move.
We will not be surprised to see this stock giving decent gains in the near-term, and recommend it for a target of Rs 142 with a stop should at Rs 112.The author is Chief analyst Technical derivatives, Angel Broking.