Dalal Street increased its gains for the second straight session on Wednesday on the back of supportive global cues. The BSE Sensex 30 share pack added more than 139.91 points, or 0.24 per cent, to 58,214. NSE's Nifty 50 gained 44.40 points, or 0.26 per cent, to settle at 17,151, while NSE's Nifty 50 gained 44.40 points, or 0.26 per cent. Despite the volatility at Dalal Street, selected stocks such as HDFC Bank, Ultratech Cement and Wipro were on traders' radar. Here's what Laxmikant Shukla, Technical Research Analyst at YES Securities, said on these stocks ahead of Thursday's trading session:
After a medium-term correction, HDFC Bank eventually took support near Rs 1,530. The stock has taken support between the price range of 1,530 and 1,510 since the post correction. The stock took support from its rising trend line and reversed the trend while forming a series of green candlesticks on the daily chart, which indicates a strong possibility of a pullback move from the current levels. It offers buying opportunities for the positional target of Rs 1,680 with a stop loss of Rs 1,530 on closing basis, with a stop loss of Rs 1,530 as a result of the overall pattern.
Ultratech Cement has produced a consolidation on the daily chart with decent volumes, which highlights upward momentum in price. The multi-week base formation suggests bullish price action. The stock has formed a bullish belt hold candlestick pattern at the central band of Bollinger, which indicates expansion in the volatility on the higher side. The current levels can be considered a buying opportunity with a stop loss below 6,990 on a closing basis for the upside target of Rs 8,070, as the stock is in a bullish trend.
The price of Wipro's stock has fallen steadily with lower highs and lower lows after a negative crossover of 100 and 20 days simple moving averages. At the same time, the MACD histogram hovers in negative territory while the RSI and stochastic lies in the oversold zone. Mixed signals are coming from the daily charts. There is a possibility that a range bound move can be made in the scrip until the stock gives a decisive close above the Rs 385 -- 390 zone. The levels of Rs 345 could be used as a support.