Buy Apollo Hospitals, SAIL, M&M, Tata Comm stocks, charts show rally in near-term; Nifty support at 15750

Technically, after three days’ uptrend rally, one more time the NIfty/Sensex took the resistance near 16000/53800.

Buy Apollo Hospitals, SAIL, M&M, Tata Comm stocks, charts show rally in near-term; Nifty support at 15750
For the bulls now, 20 day SMA (Simple Moving Average) or 15750/53000 would be the key support levels

By Shrikant Chouhan

The benchmark indices witnessed profit booking at higher levels, following a volatile intraday session, the Nifty ended 35 points lower and the BSE Sensex fell 145 points. Among sectors, some buying interest was seen in Metal stocks while intraday profit booking was seen in selective IT and Media stocks. Technically, after three days’ uptrend rally, one more time the NIfty/Sensex took the resistance near 16000/53800. They also formed long leg bearish candle formation near important resistance levels. We are of the view that, due to temporary overbought situations we may see some profit booking at higher levels. 

For the bulls now, 20 day SMA (Simple Moving Average) or 15750/53000 would be the key support levels. On the higher side, 16000/53800 would be the key resistance levels to watch out for. Below 15750/53000 support level, the indices could slip 15700-15650/52800-52700.

Technical stocks to buy

Apollo Hospitals Enterprise
BUY, CMP: Rs 3,817.4, TARGET: Rs 4,000, SL: Rs 3,730

For the past few sessions, the stock is into a range bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed a triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.

Mahindra & Mahindra Financial Services
BUY, CMP: Rs 182.6, TARGET: Rs 192, SL: Rs 177

The counter is into a gradual up move with a higher low series on the daily chart. Additionally, it has formed a Cup and Handle chart pattern with incremental volume activity. Therefore, the breakout of the range for moving further upside is very likely to occur in the near term.

SAIL
BUY, CMP: Rs 69.6, TARGET: Rs 73, SL: Rs 68

After the short-term correction in the counter from the higher levels, the downward momentum has taken a pause. On daily charts, the counter has formed a rounding bottom chart formation and reversed its trend. The formation suggests a revival of the uptrend from the current levels for further bullish movement.

Tata Communications
BUY, CMP: Rs 949.55, TARGET: Rs 1,000, SL: Rs 929

The stock had witnessed a quite strong downward movement over the past few months. However, on the monthly scale it has found support at the important retracement zone. Moreover, the sloping channel breakout on the daily and weekly chart along with decent volume activity hints at bullish momentum to remain in the coming horizon.

(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities. Views expressed are the author’s own.)

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