By Shrikant Chouhan
NSE Nifty 50 index successfully cleared the short-term resistance of 18000/60350 and succeeded to close above the same on Tuesday, which is broadly positive. In addition, on daily and intraday charts, it is holding uptrend continuation formation, which supports further uptrend from the current levels. We are of the view that, the short term texture of the market is on the bullish side but due to temporary overbought conditions we could witness range bound activity. Hence buying on intraday corrections and selling on rallies would be the ideal strategy for the short-term trades. For Nifty/ Sensex 18000/60350 and 17925/60000 would act as key support levels while 18150 -18200/60800-61000 would be the key resistance area for the bulls. Below 17925/60000 uptrend would be vulnerable, below the same the indices could slip till 17850-17800/59700-59500.
Technical stocks to buy
BUY, CMP: Rs 436.65, TARGET: Rs 460, SL: Rs 425
After the gradual up move from the lower levels, the counter is seen in the consolidation mode for the last few trading sessions. Nevertheless, on the daily scale the counter has given a breakout of the falling wedge chart formation. Hence, the structure suggests a new leg of bullish movement in the coming horizon.
BUY, CMP 1163.8, TARGET 1220, SL 1140
On the weekly scale, post reversal from its multiple support zone, the counter is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggests that the counter is likely to maintain bullish continuation formation in the near term.
BUY, CMP: Rs 673.95, TARGET: Rs 710, SL: Rs 660
The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently moving higher at a gradual pace. This indicates accumulation at these lower levels. Therefore, further upward movement from the current level is expected in the coming sessions.
Tata Consumer Products
BUY, CMP: Rs 849, TARGET: Rs 890, SL: Rs 830
The counter is trading in a rising channel pattern continuously. The higher high and higher low chart formations are evident in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength for the counter. Therefore, upward movement from the current level is very likely to remain in the near term.
(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities. Views expressed are the author’s own.)