Nifty, Sensex may remain range-bound in near term; Cipla, India Cements among stocks to buy

By Shrikant Chouhan

On last Tuesday, the benchmark indices NSE Nifty 50 and BSE Sensex witnessed range bound activity. Among Sectors, IT continued the positive momentum, rallied over 1 percent whereas profit booking were seen in Media and PSU Banks stocks, as a result, both the indices shed over 1 percent. Technically, after a strong uptrend rally, the indices witnessed range bound activity.

Oberoi Realty Ltd

BUY | CMP: Rs 1054 | TARGET: Rs 1110 | SL: Rs 1030

The counter is trading in a rising channel constantly on the weekly scale. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength. Therefore, upward movement from the current level is very likely to remain in the near future.

CIPLA

BUY | CMP: Rs 1030 | TARGET: Rs 1080 | SL: Rs 1010

The stock has shown a remarkable rally from the lows in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low series on weekly chart formation is evident in the stock. Hence, the formation is indicating a bullish continuation pattern to continue in the coming horizon.

India Cements Ltd

BUY | CMP: Rs 210.25 | TARGET: Rs 222 | SL: Rs 205

The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range bound mode, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.

Siemens Ltd

BUY | CMP: Rs 3708 | TARGET: Rs 3890 | SL: Rs 3630

After a robust rally of the past few weeks, the stock went into a consolidation mode. At present, the structure is indicating a likely breakout of the consolidation phase. Hence, the formation indicates a further bullish trend  to resume from the current levels.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Wall Street set to open higher with focus on Nvidia’s high-stakes results

Wall Street was set to open higher on Wednesday, with the spotlight firmly on Nvidia as investors wait to see if its results could reignite an artificial intelligence-powered rally in megacap growth stocks.Rising bets that Nvidia’s revenue target will once again surpass Wall Street estimates pushed the chipmaker’s stock to a record high on Tuesday, but analysts also fear that a failure to match investor expectations could trigger a wider selloff.Its shares were up 0.8% in premarket trading.

A blowout forecast from the company last quarter has been one of the biggest catalysts for the S&P 500’s 14% gain so far this year.”When the market takes a focus on one stock, any disappointment could have a reverberation in the market,” said Andre Bakhos, managing member at Ingenium Analytics LLC.

Tesla fell 2.1% after a report that the company lowered the production target of its German plant.Supporting equities on Wednesday, the yield on the 10-year U.S. Treasury note slipped from near 16-year highs hit in the previous session.Data showedthe interest rate on the U.S. 30-year fixed-rate mortgage last week shot to the highest since December 2000.S&P Global’s flash U.S. Composite PMI index for August, due at 9:45 am ET, could provide additional clues on the path for interest rates ahead of a speech by Fed Chair Jerome Powell at Jackson Hole on Friday.

Traders’ bet of a rate hike pause by the Fed next month stands at 86.5%, according to CME Group’s FedWatch tool. A slew of downbeat earnings reports also kept a lid on market sentiment. Sport retailers Nike and Under Armour fell 3.6% and 1.5% , respectively, after a downbeat profit forecast from Foot Locker, whose shares slumped 30.8%.Shares of U.S. analog chipmakers NXP Semiconductors , Texas Instruments and ON Semiconductor slipped between 2% and 3% after Analog Devices reported lower quarterly revenue.

At 8:24 a.m. ET, Dow e-minis were up 34 points, or 0.1%, S&P 500 e-minis were up 6.5 points, or 0.15%, and Nasdaq 100 e-minis were up 25.5 points, or 0.17%.Shares of drugmakers Gilead Sciences and Merck & Co advanced about 3% each after Swiss rival Roche inadvertently published positive lung cancer drug trial data.Peloton Interactive shares plunged 27.8% after the fitness equipment maker pushed back its cash-flow positive target to 2024.