The uptrend formation in Nifty and Sensex is likely to continue up to 18050-18125/60400-60700
By Shrikant Chouhan
The benchmark indices NSE Nifty 50 and BSE Sensex continued positive momentum on Tuesday. After a muted opening, the Nifty/Sensex slipped over 50/150 points, but one more time they took support near 17850/59850 and reversed sharply. Among sectors, PSU bank stocks outperformed, and the Nifty PSU Bank index rallied over 3 per cent. While profit booking was seen in IT stocks. Technically, on daily and intraday charts, the index has formed promising higher bottom formation.
The intraday structure suggests 17850/59850 would be the trend decider level for the bulls. Above the same, uptrend formation is likely to continue up to 18050-18125/60400-60700. On the flip side below the 17850/59850 uptrend would be vulnerable. The texture of the market is strong hence buy on dips and sell on rallies would be the ideal strategy for the day traders.
Stocks to buy
BUY, CMP: Rs 1,421, TARGET: Rs 1,490, SL: Rs 1,390
The stock had been forming higher lows on the daily chart, however, for the last few sessions the counter was stuck in a range-bound move and presently we witnessed a range breakout and closing above its short-term moving averages suggest that the stock has good strength for further upside.
Bank of Baroda
BUY, CMP: Rs 87.9, TARGET: Rs 95, SL: Rs 84
The counter is into an upward momentum and post breaking out of its previous highs there is a pause in the momentum, on the monthly scale, it has formed a Cup and Handle chart pattern with the decent volume therefore the follow-up bullish movement is very likely to occur in the near term.
BUY, CMP: Rs 796.5, TARGET: Rs 840, SL: Rs 780
The stock has presented an incredible up move in the last many months and it is trading in a rising channel continuously. The higher high and higher low chart formations are visible 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.
BUY, CMP: Rs 1,517.2, TARGET: Rs 1,590, SL: Rs 1,485
On the monthly scale, the stock has presented a robust rally and presently the counter is trading in a range forming the Symmetrical triangle chart pattern. However, the recent price action indicates a strong breakout is very likely in the coming time horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own.)