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Tech view: Missed the blockbuster market rally? Here's what you should do

Markets
After surging over 3,000 points in just two sessions – Friday and Monday – the S&P BSE Sensex witnessed profit booking as the markets approached the expiry of futures & options contracts for the September series on Thursday.

At the fundamental level, analysts say the government’s move to slash corporation tax rate from 35 per cent to 25.2 per cent (including surcharge) augurs well for India Inc and investors should use the opportunity to buy quality stocks from a long-term perspective.

Just in case you missed the rally, here are the levels you need to now track for index heavyweights.

S&P BSE SENSEX: The index now needs to conquer 39,750 decisively, which will confirm the beginning of follow-up buying. On the downside, 38,290 remains the support for the index, which also is its 100-days moving average (DMA). The weekly chart suggests a selling pressure only below 38,500 levels, which may change the bullish sentiment. CLICK HERE FOR THE CHART

NIFTY 50: The current bullish trend can take a breather now and the index may consolidate before the next upside. Nifty’s 100 DMA is located at 11,415 levels, which becomes the immediate support for the index. The upside is capped at 11,800 and crossing this with volumes can trigger a fresh move up. The Moving Average Convergence Divergence (MACD), however, has crossed zero line upwards, which is a positive sign. CLICK HERE FOR THE CHART

Reliance Industries (RELIANCE): After having a “Gap-up” close on August 13, 2019, the counter remained range-bound and could not stabilise above its 200-DMA. During the past three sessions, the selling pressure has been getting absorbed around the 200 DMA placed at Rs 1,252 levels. A close above this level, supported by rising volumes, suggests there is more steam left. A bigger rally is expected above Rs 1,310, its breakout mark. Trading above Rs 1,310 opens up the chances of the counter scaling towards Rs 1,370 and then then Rs 1,390. The support stays at Rs 1210 and Rs 1,250. CLICK HERE FOR THE CHART

HDFC Bank Ltd (HDFCBANK):  From August 2019 till mid-September, 2019, HDFC Bank was consolidating around its 200-DMA placed in the range Rs 1,080 – Rs 1,140, as per the daily chart. A breakout above Rs 1,150 led to a new lifetime high of Rs 1,282. In case of any profit booking (as RSI entered overbought territory), Rs 1,200 – Rs 1,180 levels should act as buying supports. On the other hand, MACD has crossed zero line upward, which should keep overall the positive momentum going. CLICK HERE FOR THE CHART

Maruti Suzuki India Ltd (MARUTI): As the counter crosses its 200-DMA along with 200-weekly moving average (WMA), the outlook has become positive for this stock. Rs 6,750 and Rs 6,360 should act as supports, which are Maruti’s 100 and 50 DMAs, respectively. The MACD has made a positive crossover above zero line, as per daily chart. RSI is still far from over bought territory, shows weekly chart. CLICK HERE FOR THE CHART

Hindustan Unilever Ltd (HINDUNILVR): The counter has broken out of nine months of consolidation in the range Rs 1,640 – Rs 1,900. The rally has taken the stock to a new lifetime high of Rs 2,100 and there is more to go. Rs 2,300 and Rs 2,380 may be the next target, the daily chart suggests. Immediate support comes at Rs 1,900 and then at Rs 1,756 levels, which also is its 50-week moving average (WMA). CLICK HERE FOR THE CHART

Housing Development Finance Corporation Ltd (HDFC): HDFC has always respected its 100-WMA since 2017. Last time, when it reached this average, the stock saw a strong buying momentum. That said, until the counter does not cross Rs 2,200 on closing basis, one should not be aggressively positive. The support stays at Rs 2,050. CLICK HERE FOR THE CHART

Larsen & Toubro Ltd (LT): The counter has sown resistance at its 200-DMA earlier. As it crossed this level on huge volumes, the momentum seems to have turned highly optimistic. MACD crossed zero line upward with the RSI also making positive crossover. This shows technical indicators are supportive of an upside rally. Rs 1,420 should act as a support for now. A bigger rally is expected above the Rs 1,600 mark. CLICK HERE FOR THE CHART


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