Buy Tech Mahindra, HDFC Life, Sun Pharma stocks, charts show near-term gains; Nifty support at 17350

The stock market benchmarks BSE Sensex and NSE Nifty 50 successfully surpassed the short-term resistance at 17500/58700, which is largely positive

Nifty, Sensex
Bullish candle and intraday breakout formation on the daily charts indicate a further trend from the current levels.

By Shrikant Chouhan

The stock market benchmarks BSE Sensex and NSE Nifty 50 successfully surpassed the short-term resistance at 17500/58700, which is largely positive. Bullish candle and intraday breakout formation on the daily charts indicate a further trend from the current levels. Now 17350/58250 would be the key support level for the following traders. Above 17550, breakout formation is likely to continue up to 17650-17700-17800/59000-59300-59600. On the other hand, indices may slip below 17350/58250 to 17300-17200/58100-57800. For the Nifty Bank and Nifty IT index, the crucial hurdles will be 38370 and 38100 respectively. Above these levels, the market would turn healthy.

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Technical stocks to buy

Tech Mahindra
BUY, CMP: Rs 1,050, TARGET: Rs 1,100, SL: Rs 1,025

After a long correction, the stock consistently formed higher bottom formation. Currently, the stock is comfortably trading above 20 or 50 day SMA (Simple Moving Averages) which is broadly positive. The texture of the chart indicating an uptrend wave is likely to continue in the near future  if it succeeds to trade above 1025, above which it could move up to 1100.

IEX
BUY, CMP: Rs 164.4, TARGET: Rs 174, SL: Rs 160

After a medium term correction, eventually the stock took the support near 150 and reversed. Post reversal, it has formed double bottom formation and bounced back sharply. Looking at the overall pattern it offers buying opportunities for the positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue up to 174.

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HDFC Life
BUY, CMP: Rs 539, TARGET: Rs 566, SL: Rs 527

After a sharp pullback rally, the stock witnessed profit booking at higher levels. However, the short term texture of the stock is still on the bullish side. On daily and intraday charts, it has formed promising higher bottom formation which is indicating strong possibility of fresh uptrend from the current levels. 

SUN Pharma
BUY, CMP: Rs 917.8, TARGET: Rs 965, SL: Rs 898

On daily and weekly charts the stock has formed promising higher high and higher low series formation which is broadly positive. After a promising breakout formation, it has been consistently trading above 900 support level. It also formed strong higher bottom formation on intraday charts. For the trend following traders, 900 would be the key levels to watch out, the overall chart structure suggests if it sustains above the same, then breakout continuation texture is likely to continue up to 965.

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

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