Nifty’s intraday charts show weakness, uptrend possible above 16700; Buy ITC, Bharti Airtel stocks

A double top formation on intraday charts and Doji candlestick formation on daily charts indicate further weakness from the current levels.

stocks to buy, ITC, Bharti AIrtel
A double top formation on intraday charts and Doji candlestick formation on daily charts indicate further weakness from the current levels. Image: Pixabay

By Shrikant Chouhan

The benchmark indices witnessed profit booking at higher levels, the Nifty 50 ended 81 points lower while the BSE Sensex was down by 407 points. Among sectors, Reality and Media continued the positive momentum whereas banking and Energy stocks registered profit booking at higher levels. Technically, on last Thursday the market opened with a gap down and recovered sharply but one more time it took the resistance near 16700/55925 and due to profit booking at higher levels corrected sharply. A double top formation on intraday charts and Doji candlestick formation on daily charts indicate further weakness from the current levels.

We are of the view that, in the near future 16700/55925 would act as a key resistance level for the traders. Below which the index could retest the 16450-16400/54900-54700. On the flip side, a fresh uptrend rally is possible only after the 16700/55925 range breakout. Above which it could move up to 16775/56200. The larger texture of the market is still in to the positive side, Hence, Contra traders can take a long bet near 16400/54700 with strict 16350/54550 support stop loss.

Technical stocks to buy

Bharti Airtel
BUY, CMP: Rs 700.2, TARGET: Rs 740, SL: Rs 685

Post short-term correction from the higher levels the downward momentum has taken a pause near its demand zone. On daily charts, the counter has formed a rounding bottom formation and reversed its trend. The formation suggests a revival of the uptrend from the current levels for further bullish movement.

Manappuram Finance
BUY, CMP: Rs 95.55, TARGET: Rs 101, SL: Rs 92

The counter had been in a declining trend in the past many months. However, recently there is a reversal formation in its downward movement from its multiple support levels. As the stock is available near to its support area which could act as a strong base, and simultaneously making it a favorable candidate in terms of risk and reward.

Godrej Properties
BUY, CMP: Rs 1,399.5, TARGET: Rs 1,470, SL: Rs 1,370

The stock was into a sloping channel from the past few weeks. Eventually, its downward move stopped near the important support zone. The strong rebound and recent trend line breakout confirms bullish momentum to remain in the coming time horizon.

ITC
BUY, CMP: Rs 270.65, TARGET: Rs 285, SL: Rs 265

The counter is trading in a rising channel constantly. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength. Therefore, upward movement from the current level is very likely to remain in the near term.

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

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