Benchmark indices BSE Sensex and NSE Nifty continued their firm trade in afternoon trade on account of buying in frontline blue chip counters. Market sentiments got a boost after after the US Federal Reserve on expected lines left interest rate unchanged, and signaled gradual hike in near future. In the early trade, the 30-share index soared over 350 points, while NSE Nifty regained 8,850 mark. At 12.24 pm, Nifty was trading 73.85 points up at 8851. The index opened the day at 8873.35 and has touched a high and low of 8893.35 and 8837.80, respectively, in trade.
Meanwhile, Chandan Taparia, derivatives analyst, equity research at Anand Rathi Financial Services gave his technical calls on Bharat Forge, Coal India and HCL Technologies with ‘Buy’ recommendation.
Bharat Forge (Buy) : The stock has taken support at its previous support of 844-845 levels and is holding the gains from last three sessions. It has been making higher top –higher bottom formation from last eight weeks. It is set to surpass immediate hurdle to head towards 920 and higher levels. So, recommending buying the stock with the stop loss of 860 for the upside immediate target of 920 levels.
Coal India (Buy): The stock surpassed the immediate hurdle of 330 levels and gave the highest daily close of last six trading sessions. It has been making higher highs – higher lows formation from five trading weeks. It surpassed its falling trend line and now according to its current price placement, the stock is showing the potential for an up move towards 338 zones. So, one can buy the stock with the stop loss of 318 for the upside immediate target of 338 levels.
HCL Technologies (Buy): The stock is turning from the support levels and looks attractive in terms of risk reward ratio. It has formed a bullish price structure and fresh built up of long position may take the stock towards 810 levels. Thus recommending buying the stock with the stop loss of 760 for the upside immediate target of 810 levels.
Bata India (Sell): The stock is making lower top – lower bottom formation from last four trading sessions as it failed to surpass the multiple hurdle of 547-550 zone. It is finding sustained selling pressure at the higher levels. It broke its support of 520 levels and is witnessing built up of short position with open interest addition of around 11 per cent in last three sessions. One can sell the stock on a small bounce back move with strict stop loss of 530 for the downside target of 500 levels.