If Nifty trades above 15,870, it may rally up to 16,150; ICICI Bank, SBI Life among 4 technical stocks to buy

July 07, 2021 8:32 AM

The intraday chart suggests, traders may take a caution stance near the 15900/53200 level

ICICI Bank, SBI Life, Jindal Steel, Stocks to buyTechnically, in the near future, 15870/ 52900 should be the key levels to watch out for, below the same correction wave likely to continue. Image: Reuters

By Shrikant Chouhan

The current week start was positive, post gap up opening Nifty 50/BSE Sensex quickly surpassed the 15750/ 52600 resistance mark and rallied over 190/ 400 points. In the daily time frame, the index has formed a strong reversal formation and the texture of the pattern suggests an uptrend wave likely to continue in the medium term. However, the market is consistently taking resistance near the 15900/53200 level and the intraday chart suggests, traders may take a caution stance near the 15900/53200 level.

Technically, in the near future, 15870/ 52900 should be the key levels to watch out for, below the same correction wave likely to continue up to 15775-15720/ 52850-52500. On the flip side, if the market succeeds to trade above 15870 /52900, we can expect the continuation of the uptrend wave till 15925-15965/ 53200-53400. Further upside may also continue which could lift the index up to 16050-16150/ 53500-53750. Sector-specific, the Bank Nifty and selective financial stocks likely to outperform.

Technical stocks to buy

ICICI Bank
BUY, CMP: Rs 650.3, TARGET: Rs 685, SL: Rs 635

Post strong rally from 530 to 660, the stock had witnessed a gradual down move however the counter is trading in a range with decent volume activity and constantly taking support at the rising trend line which suggests that the stock is into the accumulation stage hence fresh breakout move is expected for a new leg of uptrend in the near term.

Jindal Steel & Power
BUY, CMP: Rs 391, TARGET: Rs 414, SL: Rs 380

After hitting the high of 500 the counter witnessed a sharp price correction and it entered into consolidation mode for the last few sessions however currently on intraday charts, it is trading in a tight range of the Symmetrical triangle chart pattern which indicates that the counter has enough potential for upside with favorable risk and reward scenario from the current levels.

SBI Life Insurance Company
BUY, CMP: Rs 1,023, TARGET: Rs 1,075, SL: Rs 1,001

A phenomenal up move in the counter is seen for the last many months and still it is in the bullish trend, the stock is continuously creating the Higher High and Higher low series chart pattern, furthermore recent strong bullish candlestick formation indicates upward momentum to sustain in coming sessions.

Sun Pharmaceuticals
BUY, CMP: Rs 673.25, TARGET: Rs 707, SL: Rs 660

For the past few weeks, the stock is broadly trading in a 660 to 680 rectangular range formation near its important retracement zone hence a strong base has been shaped for the new leg of an uptrend for the counter, however, it seems that a strong up move is very likely from the retracement area on the daily chart for further bullish movement.

(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)

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