After hitting all-time high of 11761 in the Benchmark Nifty50 last week, Index is now consolidating in a range. Nifty50 benchmark has formed higher high for the seven consecutive weeks but on RSI front it formed a negative divergence along with stochastic moved in an overbought territory which led profit booking in the past sessions.

The present consolidation phase will indicate a fresh uptrend resuming in the near future. The index shall resume its uptrend since no major change in stance before election, its structure of higher high and higher bottoms shall continue in near future.

Tuesday’s market gains almost 647.45 points or 0.58% at 11671. We expect the index to enter in a round of consolidation in the range of 11800-11500 with some stock specific action. We continue to maintain our bullish stance with an upside range of 11800-12200. On the other hand, 11300-11000 are the key downside support levels.

Stock recommendations :

AMBUJACEM: BUY| Above : Rs 225| Target: Rs 235| Stop loss: Rs 218|

AMBUJACEM is beaten down from 229 levels but fail to break 220 or level. Consolidation between 220 to 226 confirms the positive outcome in near future. Above 228 another double bottom formation is confirmed and breakout above this pattern can lead it towards 240 plus levels.

BATA INDIA : BUY| Above : Rs 1425| Target: Rs 1455| Stop loss: Rs 1400|

BATA INDIA is again consolidating in the range of 1425-1370. Break out above 1425 can lead it towards 1450+ levels in near future. Making of higher high and higher bottom and consolidation makes our view more clear.

TATASTEEL: BUY| Above : Rs 555| Target: Rs 575| Stop loss: Rs 538|

TATASTEEL is also consolidating and forming high highs and high lows in hourly charts. Above 555 can again lead it towards 575+ levels in near future.