By Shrikant Chouhan
On Tuesday, the benchmark indices bounced back sharply. Nifty ended 126 points higher while Sensex was up by 446 points. Among sectors, almost all the major sectoral indices were traded in the green but realty, banking and financial stocks outperformed.
Technically, after a gap in the open market successfully cleared, the 18,750 resistance zone and the post breakout that followed intensified the positive momentum. On intraday charts, the index has formed a bullish candle, which implies an increase in the uptrend formation in the near future. We are of the view that this positive sentiment is likely to maintain its nature in the forthcoming period. For the bulls now, the index could rally till 18,880-18,925. On the other side, below 18,750, traders may prefer to exit from the stock. Below which, the market could retest the level of 18,700-18,675.
Stocks to Buy
ICICI Bank
BUY | CMP: Rs 939.5 |TARGET: Rs 990 | SL: Rs 920
ICICI Bank shares witnessed a gradual decline from the higher levels in the past few sessions. However, the downside seems to be restricted and recent sloping channel breakout formation along with incremental volume activity suggests an uptrend to resume from the current levels.
Bajaj Auto
BUY | CMP: Rs 4,619 | TARGET: Rs 4,850 | SL: Rs 4,520
After a remarkable rally in the past few weeks, Bajaj Auto went into a consolidation phase. At present, the structure is indicating a likely breakout from the consolidation phase with a decent volume. Hence, the formation indicates a further bullish trend in the coming period.
Jubilant FoodWorks
BUY | CMP: Rs 493 | TARGET: Rs 520 | SL: Rs 483
On the weekly scale, Jubilant FoodWorks stock is seen consolidating in a range and currently, it has rebounded from a lower boundary of the range. The structure suggests reversal of trend and bullish strength for a fresh up move from the current levels.
HCL Technologies
BUY | CMP: Rs 1,169.5 | TARGET: Rs 1,230 | SL: Rs 1,145
HCL Tech 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.
(Shrikant Chouhan, Head of Equity Research -Retail, Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)