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Nifty will remian narrow ranged throughout the day and the volatility is lowest in several weeks. The candle for the day was a star indicating extreme uncertainty in the market. The level of 9,620-9,635 is providing support to the index and if this level does not hold then we can expect the market to decline towards 9,580 and 9,550. In case Index manages to move above 9,680 we may see a rally towards 9,750 and higher levels.
Stocks to watch:
HAVELLS INDIA - BUY
LAST CLOSE: Rs 505
STOP LOSS: Rs 490
TARGET: Rs 530
The stock gave a classical breakout from its Pole & Flag pattern on the daily chart and holding the gains even after a small decline in the broader market. It has retraced its 61.80% retracement of its previous fall and making a way to retest its immediate swing high of 530.
DHFL - BUY
LAST CLOSE: Rs 435
STOP LOSS: Rs 422
TARGET: Rs 455
DHFL is in a very strong up trend and prices have retraced to the support at around 417. Recently it took support at its major rising trend lien and gave a breakout from its pattern formation. It provides a good opportunity to buy for a rally to around 455. Hence, recommending a buy with a stop loss of 422.
Disclaimer: Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.