Nifty selling pressure to continue under 17800; Godrej Properties, Dr Reddy’s among top stocks to buy | The Financial Express

Nifty selling pressure to continue under 17800; Godrej Properties, Dr Reddy’s among top stocks to buy

If Nifty continues to trade under the 17,800 resistance level, it could witness further selling pressure.

stocks to buy
Godrej Properties, Dr Reddy's, Colgate-Palmolive (India) among top stocks to buy.

By Shrikant Chouhan

The market continued range-bound activity for the second day in a row, the Nifty ended 43 points lower while the Sensex was down by 220 points. Among sectors, some buying was seen in realty and selective banking stocks, whereas profit booking was seen in FMCG stocks, as a result, the FMCG index was trimmed nearly 1 percent.

Technically, on intraday charts the index consistently took resistance near the 17,800/60,650 level, it also formed a lower top formation which indicated temporary weakness. For traders, now as long as the index is trading below 17,800/60,650 the selling pressure is likely to continue. Below, the Nifty/Sensex could clip till 17,600-17,550/60,000-59,800. On the flip side, a fresh uptrend rally is possible only after the dismissal of 17,800/60,650 above which, the index could move up to 17,850-17,900/60,900-61,000.

Stock Recommendations

Dr Reddy’s Laboratories

BUY | CMP: Rs 4434 | TARGET: Rs 4660 | SL: Rs 4340

For the last few weeks, the counter was stuck in a range-bound movement and presently we witnessed a range breakout. Moreover, the closing above its resistance zone suggests that the counter has good potential for further upside.

Manappuram Finance

BUY | CMP: Rs 117.1 | TARGET: Rs 123 | SL: Rs 113

The stock has given a breakout of the triangle chart formation, which clearly suggests bullish momentum to remain in the short term. Additionally, the closing above its short-term moving average is indicating a bullish strength from the current levels.

Colgate-Palmolive (India)

BUY | CMP: Rs 1468 | TARGET: Rs 1550 | SL: Rs 1435

The stock had underperformed in the past many 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.

Godrej Properties

BUY | CMP: Rs 1175.5 | TARGET: Rs 1235 | SL: Rs 1150

After the short-term correction in the counter from the higher levels, the downward momentum has taken a pause. On the daily charts, the counter has formed a rounding bottom chart formation along with decent volume activity and it has reversed its trend. The formation suggests a revival of the uptrend from the current levels for further bullish movement.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)

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First published on: 08-02-2023 at 12:03 IST