Technically speaking, the Nifty has now managed to surpass the ‘20-day EMA’ for the first time since 24th February. Since there was a complete broad based participation in this move, it can be considered as a robust one. Looking at the way charts are shaped up, we will not be surprised to see this rally getting extended towards 9,500-9,700 over the next few days. However, one must not forget that the recent crisis is related to ‘Health’ and hence, it would be important to see further developments with respect to coronavirus over the weekend. If no aberration seen then the above mentioned levels are very much on cards. On the flipside, 8900 followed by 8650 would be seen as key supports. Traders are advised to keep following stock centric approach and should keep booking timely profits on a regular basis.
NSE Scrip Code – CONCOR
After the recent hammering in the market, we had a sharp broad based relief rally in the week gone by. PSU stocks who were on the back foot initially, started participating in this recovery on Thursday and this one of the ‘Navratna’ companies had a stellar breakout from recent hurdle of 340 on a closing basis. Importantly, the price activity is backed by more than twice of its average daily volume. Thus, we recommend going long for a positional target of Rs.417-420 in coming days. The stop loss can be placed at Rs.352.
NSE Scrip Code – MARUTI
The ‘Auto’ sector has undergone a tremendous stress over the past few months, but finally there was some sigh of relief for traders trapped in some of the marquee names within this space. ‘Maruti’ had seen a nosedive in the recent sell off and in the process, tested the multi-year lowest levels at 4000. However, last week was excellent for this automobile giant as we saw a colossal rally of nearly 33% in merely three trading sessions. Technically, the stock has managed to surpass the ‘20-day EMA’ with an ease and now looking at the placement of the ‘RSI-Smoothened’ on daily chart, we expect the stock to continue its relief move. The stock can be bought on a decline towards 5,150 for a target of 5,700-5,900 over the next few sessions. The stop loss can be placed at Rs 4,720.
Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives at Angel Broking Ltd. The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.