HCL Tech, Canara Bank among top stocks to buy; uptrend vulnerable below 18,000, pullback rally to continue

Among sectors, the Metal index outperformed on Tuesday, rallied over 4 percent whereas FMCG and Pharma stocks witnessed some profit booking at higher levels.

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18,000 is a sacrosanct support level, above which the Nifty index could move upwards.

By Shrikant Chouhan

The benchmark indices continued the positive momentum second day in a row, Nifty ended 120 points higher while the Sensex was up by 368 points. Among sectors, the Metal index outperformed on Tuesday, rallied over 4 percent whereas FMCG and Pharma stocks witnessed some profit booking at higher levels. Technically, after a promising reversal formation, the market held the uptrend formation throughout the day. The higher bottom intraday formation indicates continuation of pullback rally in the near future.

For the trend following traders now, 18,000/60,500 would act as a sacrosanct support level, above which the index could move up to 50 day SMA (Simple Moving Average) or 18,220/61,300. Further upside may also continue which could lift the index till 18,300/61,500. On the flip side, below 18,000/60,500, uptrends would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.

Stock Call: HCL Tech

BUY | CMP: Rs 1036 | TARGET: Rs 1090 | SL: Rs 1015
The stock had underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range bound mode near its support zone, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.

Stock Call: Canara Bank 

BUY | CMP: Rs 307.15 | TARGET: Rs 323 | SL: Rs 300
On the weekly scale, the stock faced multiple resistance around 330 levels due to strong supply area, which has resulted in the transitory profit booking in the counter. Nevertheless post decline the stock took support at its important retracement zone, which indicates reversal from the current levels.

Stock Call: BPCL

BUY | CMP: Rs 326.5 | TARGET: Rs 345 | SL: Rs 317
For the past few sessions, the stock is consolidating near its 100 day SMA (simple moving average). The bullish candlestick formation suggests a likely start of a new leg of upward movement in the coming horizon.

Stock Call: Godrej Properties

BUY | CMP: Rs 1231.55 | TARGET: Rs 1290 | SL: Rs 1200
The counter had been in a declining trend in the past few sessions. However, at present there is a pause in its downward movement due to its strong multiple support levels. The stock is available near to its demand zone, which could act as a strong base, simultaneously making it a favorable candidate in terms of risk and reward.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views are author’s own. The stock recommendations in this story are by the respective research analysts and brokerage firms. does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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First published on: 28-12-2022 at 08:51 IST