Dmart, HDFC Bank among top stocks to buy; market outlook broadly positive, Nifty may head towards 18800 level | The Financial Express

Dmart, HDFC Bank among top stocks to buy; market outlook broadly positive, Nifty may head towards 18800 level

The support for NSE Nifty 50 and BSE Sensex has shifted to 18550 and 62350 from 18450 and 62000 respectively.

Dmart, HDFC Bank among top stocks to buy; market outlook broadly positive, Nifty may head towards 18800 level
Technically, the market is consistently holding higher high and higher low formation which is broadly positive

By Shrikant Chouhan

On last Tuesday, benchmark indices registered a fresh all-time high, after a promising uptrend rally the nifty ended 55 points higher while the Sensex was up by 177 points. Among Sectors, FMCG and Metal rallied over 1% whereas some profit booking was seen in selective Auto stocks. Technically, the market is consistently holding higher high and higher low formation which is broadly positive.

We are of the view that the support for NSE Nifty 50 and BSE Sensex has shifted to 18550 and 62350 from 18450 and 62000 respectively. As long as the index is trading above 18550 and 62350 levels, uptrend wave is likely to continue. Above which, the market could move up to 18750-18800 and 63100-63300. On the flip side, selling pressure is likely to accelerate if the index succeeds to trade below 18550 and 62350 below the same, indices could slip till 18450 and 62000 respectively.

Avenue Supermarts (Dmart): BUY
CMP: Rs 3965.1| TARGET: Rs 4160| SL: Rs 3885

The counter had been in a declining trend in the past many sessions. However, at present, there is a pause in its downward movement due to its strong multiple support levels. The stock is available near its demand zone, which could act as a strong base, simultaneously making it a favorable candidate in terms of risk and reward.

Godrej Consumer Products: BUY
CMP: Rs 865.65 | Target: Rs 910| SL: 848

On the daily chart, post reversal from its multiple support zone the stock is into a gradual up move in a rising channel pattern. The texture of the chart pattern suggests upward movement from the current level is very likely to continue in the coming sessions.

Cipla: BUY
CMP: Rs 1121.15| Target: Rs 1180| SL: Rs 1095

The stock witnessed a gradual decline from the higher levels in the past few sessions. However, the downside seems to be restricted and recent sloping channel breakout formation along with incremental volume activity suggests an uptrend to resume from the current levels.

HDFC Bank: BUY
CMP: Rs 1597.85 | Target: Rs 1680| SL 1565

The stock has presented a robust rally, after a breather of a few trading sessions, it has taken a pause in the momentum within a range. Currently, the counter is trading near the lower boundary of the range, which indicates reversal from current levels.

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

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First published on: 30-11-2022 at 09:01 IST