Pullback may extend towards 11,400
Nifty formed a bottom at 11,108 and reversed northward during Tuesday's (May 14) session. Nifty has witnessed a total fall of 748 points from the all-time high of 11,856. Many stocks from the largecap space seem oversold and there are good chances they might pull back from the current levels. Nifty could extend the pullback toward 11,390-11,400 levels. However, overall trend would remain bearish unless Nifty closes above 11,550.
CMP: Rs 315
Target: Rs 335
Stop Loss: Rs 300
Stock has been outperforming amongst all the PSU banking stocks. The stock price has broken out from bullish “Flag” pattern on the daily charts. The stock has been rising with higher volumes for last 3 sessions. Considering the technical evidences discussed above, we recommend buying the stock between current market price (CMP) and Rs 308 for the target of Rs 335, keeping stop loss at Rs 300 on closing basis.
BUY ULTRATECH CEMENT
CMP: Rs 4,415
Target: Rs 5,000
Stop Loss: Rs 4,300
After running correction of almost eight per cent from the all-time high of Rs 4,687, the stock has resumed its uptrend. Last month, the stock registered its new all-time high above Rs 4,600 levels. Bullish golden crossover is witnessed on the charts, indicating long term trend reversal. The stock has broken out from the long consolidation which held for last nine quarters. Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 4,200, for the target of Rs 5,000, keeping a stop loss at Rs 4,100 on a closing basis.
The author is a research analyst working with HDFC Securities. Views expressed are his own.