After a steady start, Sensex touched intra-day high of 20,443.62 but emergence of profit-selling in ICICI Bank, ONGC, Bharti Airtel, Dr Reddys, Cipla and RIL dragged 30-share index to end 20,223.98, a fall of 62.14 points, or 0.31 per cent.
This is the first time in five sessions the Sensex ended in the negative terrain. It had climbed 595 points in past four sessions to touch highest levels since January, 2011.
According to Dipesh Dedhia, Senior Technical Analyst, themarkets.in, the Nifty is likely to continue with upward journey with intermediate profit booking sessions and traders can expect more upside in at least four Nifty stocks.
Following are his views on the Nifty, Axis Bank, HDFC Bank, Maruti and M&M:
Last week, we saw the Nifty close above its January 2013 top of 6,111, which is a positive sign. In coming days, the benchmark can go up to 6,337 which is its November 2010 top and then may try to breach January 2008 high of 6,357. Profit booking can be expected at these levels.
In between, any intraday correction or a one-day correction towards the 6,120 to 6,045 level will act as buying opportunity. Trend only will reverse if the Nifty closes below the 5970 levels. We are expecting the Nifty remain sideways with positive bias this week.
Last week, the stock made a bullish flag pattern on the daily chart. The price pattern suggests that the stock can rally upto Rs 1,580 levels in the near term. Traders can buy the stock on dip towards Rs 1,505-1,515 while keeping a stoploss of Rs 1,468.
HDFC Bank is one of the outperformers on the Bank Nifty. Last week, we saw it gave a major breakout on the weekly chart. We recommend buying the stock at Rs 710-715 levels with a stoploss of Rs 700 on a closing basis for a target of Rs 740.
A close above Rs 1,765 would confirm an upside breakout and we expect the stock to test levels of Rs 1,800-1,820.
The stock is one of the major outperformers in the auto sector. Today's upmove above Rs 1,010 levels confirms its breakout on the daily chart. We expect the stock to rally 4-5 per cent in the coming trading sessions.
(Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst and do not represent those of EconomicTimes.com.)