Nifty to soon hit 17890 if it holds above 17700; Tech Mahindra, Motherson Sumi among top stocks to buy

As long as Nifty 50 and BSE Sensex are trading above 17700/59500 the chances of hitting 17850-17890/59800-60100 would turn bright.

Tech mahindra, laurus labs, stocks to buy
On Tuesday, the Nifty and BSE Sensex opened with a positive note and successfully cleared the 17700 and 59500 important resistance marks.

By Shrikant Chouhan

The bulls continued the positive momentum for the third day in a row, the Nifty 50 index ended 179 points higher while the Sensex was up by 672 points. Among sectors, buying was seen in energy and financial stocks whereas some profit booking was witnessed in selective Pharma and Metal stocks. On Tuesday, the Nifty and BSE Sensex opened with a positive note and successfully cleared the 17700 and 59500 important resistance marks. Post intraday breakout, both rallied over 100 and 300 points, respectively. Technically, on intraday charts, the index has formed promising breakout continuation formation which is broadly positive. For the day traders, now the support has shifted to 17700/59500 from 17550/59000. As long as the index is trading above 17700/59500 the chances of hitting 17850-17890/59800-60100 would turn bright. However, below 17700/59500 strong possibility of quick intraday correction up to 17625-17580 and 59350-59100 is not ruled out.

Technical stocks to buy

Tech Mahindra
BUY, CMP: Rs 1,789.8, TARGET: Rs 1,880, SL: Rs 1,755

After the sharp up move, the stock is trading in a range-bound movement well above its short term moving averages, as a result, the formation of a Flag chart pattern on the daily scale is formed which points to bullish movement to resume in the coming horizon.

Motherson Sumi Systems
BUY, CMP: Rs 224.8, TARGET: Rs 236, SL: Rs 219

The stock is trading into a Rising Channel chart formation making the higher top and higher bottom, as a result, all major technical trend indicators such as Macd and ADX are strong and steady. Therefore upward movement from the current level is very likely to continue in the coming sessions.

Laurus Labs
BUY, CMP: Rs 519.05, TARGET: Rs 545, SL: Rs 505

Post decline from the highs of 550 the downward momentum has taken a pause and a rounding bottom chart formation is seen on intraday charts which suggests a revival of the uptrend from the current levels for further bullish movement.

Godrej Properties
BUY, CMP: Rs 1,890.3, TARGET: Rs 1,985, SL: Rs 1,850

For the past few sessions, the stock was into an accumulation phase where it was trading in a rectangle formation as a result a good demand zone was created around the 1850 area which will act as a support for the counter. Recently the stock has given a breakout of the range signaling for a bullish up move in the near term.

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

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