ONGC, HDFC Life, Bajaj Finance among top technical stocks to buy as Sensex, Nifty show weakness on charts

November 17, 2021 8:58 AM

Technically, on intraday charts, the Nifty and Sensex formed lower top formation which is broadly negative.

stock market, Nifty, Sensex, stocks to buyThe texture of the market is volatile hence level based trading would be the ideal strategy for the traders. Image: Reuters

By Shrikant Chouhan

The Nifty 50 and BSE Sensex ended 145 and 396 points lower, respectively. Among sectors, PSU Banks and Pharma indices witnessed selling pressure, while despite weak market sentiment, the Auto index rallied over 2.5 per cent. Technically, on intraday charts, the Nifty and Sensex formed lower top formation which is broadly negative. For the day traders, now 18060/60550 would be the immediate resistance level, below the same the correction wave is likely to continue up to 17900-17830/60000-59800. On the other side, 18060/60550 would be the key intraday breakout level for the bulls, above the same, the index will move up to 18100-181235/60700-60800. The texture of the market is volatile hence level based trading would be the ideal strategy for the traders.

Technical stocks to buy

ONGC
BUY, CMP: Rs 157.15, TARGET: Rs 165, SL: Rs 153

On the monthly scale after the remarkable up move the counter witnessed gradual price decline however post reversal from the important retracement support, the counter is now trading in a rising channel formation with the higher bottom series pattern on the daily chart, which is indicating bullish momentum to sustain in the coming days.

HDFC Life
BUY, CMP: Rs 713.6, TARGET: Rs 750, SL: Rs 699

On the daily chart, the level of 710 has acted as a minor resistance for the counter which eventually it has succeeded to cross with modest volume and post breakout the consolidation is seen in that region hence the structure suggests that a fresh leg of upward movement is likely in coming trading sessions.

Bata India
BUY, CMP: Rs 2,201.35, TARGET: Rs 2,310, SL: Rs 2,150

The stock is trading into a rising channel pattern forming the higher top and higher bottom series continuously on the weekly scale, the strong bullish activity on the daily chart suggests that the counter is likely to maintain bullish continuation formation in the near term.

Bajaj Finance
BUY, CMP: Rs 7,555.7, TARGET: Rs 7,950, SL: Rs 7,400

After hitting the high of 8050 the counter witnessed a price correction and it entered into consolidation mode for the last few sessions however currently on the daily charts, it is trading in a 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.

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

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