Canara Bank, India Cements among top stocks to buy; 18,700 key Nifty level to watch for upside | The Financial Express

Canara Bank, India Cements among top stocks to buy; 18,700 key Nifty level to watch for upside

Currently, the market is trading near 10 day SMA and the range bound activity near 10 day SMA (Simple Moving Average), indicating strong possibility of trend reversal in the near future.

Canara Bank, India Cements among top stocks to buy; 18,700 key Nifty level to watch for upside
For the bulls now, 18,700/62,800 would be the key level to watch out for.

By Shrikant Chouhan

On Tuesday, the benchmark index Nifty closed 54 points lower, while the Sensex was down by 208 points. Among sectors, the Nifty IT index corrected sharply, down 1.5 percent whereas, despite tepid market conditions, the Nifty PSU Bank index outperformed, rallied over 1.20 percent. Technically, after a gap down opening, the market hovered between 18,600-18,650/62,400-62,650 range during the entire day.

Also read: Share Market LIVE: Nifty, Sensex stare at negative start amid weak global cues; RBI MPC meet outcome eyed

Currently, the market is trading near 10 day SMA and the range bound activity near 10 day SMA (Simple Moving Average), indicating strong possibility of trend reversal in the near future. For the bulls now, 18,700/62,800 would be the key level to watch out for; above the same, we could see a fresh uptrend rally till 18,800-18,850/63,100-63,300. On the flip side, fresh round of selling pressure is possible only after dismissal of 18,600/62,400, below which the index could slip until 18,500-18,480/62,100-61,900.

Stock Call: Canara Bank

BUY | CMP: Rs 318.65 | TARGET: Rs 335 | SL: Rs 310

On the daily scale, the stock has presented a robust rally. After a breather of few trading sessions and a pause in the momentum within a range, finally the stock is gaining bullish traction for further upside again. Therefore, short-term texture is looking attractive for bullish continuation formation from the current levels.

Stock Call: India Cements 

BUY | CMP: Rs 249.4 | TARGET: Rs 262 | SL: Rs 243

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

Stock Call: Bajaj Finance

BUY | CMP: Rs 6698.55 | TARGET: Rs 7040 | SL: Rs 6560

After a medium term correction, eventually, the stock took the support and reversed its trend. Post reversal, it has formed double bottom chart formation. The overall pattern offers buying opportunity for the positional traders with a decent risk-reward ratio.

Stock Call: Adani Ports

BUY | CMP: Rs 896.45 | TARGET: Rs 940 | SL: Rs 878

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

(Shrikant Chouhan, Head of Equity research (Retail) , Kotak Securities. Views are author’s own.)

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First published on: 07-12-2022 at 08:22 IST