By Shrikant Chouhan

For the eighth day in a row, the market reached a new peak at 17436 on Tuesday. The benchmark indices BSE Sensex and Nifty 50 witnessed intraday selling pressure near 17450/58550 resistance level. The intraday activity has been lackluster with a momentum of near 150/500 points. The global cues were tepid too. Among sectors, after a remarkable rally, realty and IT stocks witnessed profit booking at a higher level. Whereas, some buying was seen in selective financial and FMCG stocks.

After the 800/2840 points rally, the indices are trading within a narrow range, which indicates bulls may start feeling discomfort to go further long near 17450. But technically, a short term correction if possible only below 17290/58000. For the next few trading sessions, 17290/58000 should act as a trend decider level, above which we can expect one more uptrend wave towards 17450-17500/58550-58700. However, trading below the same would trigger quick intraday correction up to 17250-17210/57700-57500.

Technical stocks to buy

Housing Development Finance Corporation (HDFC)
BUY, CMP: Rs 2,837, TARGET: Rs 2,980, SL: Rs 2,780

On the daily time frame, after the sharp up move, the stock was into a consolidation phase and finally, it has given a breakout from its Flag chart pattern with incremental volume activity indicating further up move in the coming horizon.

ITC
BUY, CMP: Rs 211.75, TARGET: Rs 225, SL: Rs 205

The stock is into a gradual up move with a higher high and higher low series formation moreover on the daily chart the counter has formed an Inverse Head and Shoulder chart pattern which hints for a strong breakout move in the near term.

ICICI Bank
BUY, CMP: Rs 716.9, TARGET: Rs 755, SL: Rs 700

On the monthly scale, the stock has presented a robust rally, after a breather of few trading sessions it has taken a pause in the momentum within a narrow range however short-term texture is looking attractive for bullish continuation formation from the current levels.

Gujarat Gas
BUY, CMP: Rs 695.85, TARGET: Rs 730, SL: Rs 680

On a broader time frame, the stock had been in a strong uptrend move however the recent price correction from its supply zone has plunged the counter to its important retracement support area as a result the pullback rally is very likely for further up move in the coming sessions

(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)