Nifty trend still weak, but pullback rally may extend to 17600-17650; buy these 4 stocks for gains

November 24, 2021 8:50 AM

Technically, the short-term formation is still on the weak side, but due to an extremely oversold situation the market registered a technical bounce back.

For the day traders, now 17400/58300 would be the key level to watch out for. (Image: REUTERS)

By Shrikant Chouhan

The benchmark indices witnessed a sharp recovery rally, after a volatile trading session the Nifty ends 68 points higher while the Sensex was up by 141 points. After a weak opening,  finally the Nifty took the support near 17200/57700 and reversed sharply. Among sectors, strong buying interest was seen in Metal stocks, as a result, the Nifty Metal index rallied nearly 3.5 percent. 

Technically, the short-term formation is still on the weak side, but due to an extremely oversold situation the market registered a technical bounce back, it also formed a bullish candle which indicates further upside from current levels. For the day traders, now 17400/58300 would be the key level to watch out for. Above the same, the pullback rally will continue up to 17600-17650/59000-59150. On the flip side, below 17400/58300, the strong possibility of one more leg of correction till 17330-17280/58000-57800 is not ruled out.

Bharti Airtel: BUY
CMP – Rs 757.25 |  TARGET – Rs 795 | SL – Rs 740

The stock has given a breakout of its Ascending Triangle chart pattern with a strong bullish candlestick, additionally on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates the beginning of a new up move in the counter.

HCL Technologies: BUY
CMP – Rs 1115.75 | TARGET – Rs 1170 | SL – Rs 1090

Post correction from the highs of 1360, there is a pause in a downtrend and the counter is consolidating in a range with decent volume activity near its retracement support zone, which suggests that the stock is getting bullish interest as it is into oversold territory, therefore we expect a strong reversal in the coming horizon.

Grasim Industries: BUY
CMP – Rs 1776.8 | TARGET – Rs 1870 | SL- Rs 1740

On the daily chart, after the upward movement, the stock witnessed profit booking on higher levels, but eventually, it took support at a Fibonacci retracement zone, moreover, the incremental volume activity near the support area is indicating reversal from current levels.

Indiabulls Housing Finance: BUY
CMP – Rs 216.45 | TARGET – Rs – 230 | SL – Rs 212

The stock is broadly trading in a range of 200 to 250 and currently, it is available near the lower range of the boundary post its short term correction, therefore, the further downward move seems to be restricted and hence we expect revival in trend from the current levels in coming trading sessions.

(Shrikant Chouhan is Head of Equity Research (Retail) at Kotak Securities Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Buy these two stocks for gains; Nifty may fall to 16500 if it breaks 16800 support levels
2Nifty shorts still intact, continue to sell on rise till index breaches 17900-18000 range
3Nifty may bounce to 17777 if it holds above 17450; watch Infosys, Kotak Bank, Titan, for action