Diwali 2021 technical stock picks: Buy Infosys, Sun Pharma, others in Samvat 2078; charts show up to 35% rally

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October 27, 2021 3:15 PM

BSE Sensex and Nifty 50 have rallied over 30 per cent so far in the year, and over 42 per cent from Diwali 2020.

Infosys, Sun Pharma, Canara Bank, stocks to buy, diwali 2021Research and brokerage firm Kotak Securities has picked five stocks that show strong rally on the technical charts

BSE Sensex and Nifty 50 have rallied over 30 per cent so far in the year, and over 42 per cent from Diwali 2020. In the Samvat 2078, chartists believe that markets will remain highly volatile, however, the uptrend may continue. Research and brokerage firm Kotak Securities has picked five stocks (Infosys, IndiGo, Sun Pharmaceuticals, etc) that show strong rally on the technical charts, ranging from IT to FMCG to the banking sector. All the five stocks show up to 35 per cent rally on charts. The brokerage firm has suggested buying 50 per cent of the above-mentioned stocks at current levels.

Top 5 technical stocks to buy

Infosys

Buy 50% at current and rest 50% at 1530. Target: Rs 1950-2050; Rally 20%
Key Support Levels: 1700-1660-1585-1500-1450
Key Resistance Levels: 1810-1915-1950-2050

After a strong uptrend rally from 1550 to 1750, the stock has been consolidating within the range of 1650 to 1750. On daily charts, near the 50 days SMA it has formed promising double bottom formation. For the short-term traders, 50 days SMA and for the medium term, 200 day SMA would be the key trend decider level. Technically, as long as it’s trading above the same, uptrend texture is likely to continue up to 1950. Further upside may also continue which could lift the stock up to 2050.

InterGlobe Aviation (IndiGo)

Buy 50% at Rs 2000 and rest 50% at 1800. Target: Rs 2300-2500, Rally: 23.7%
Key Support Levels: 1950-1800-1750-1700
Key Resistance Levels: 2150-2300-2375-2500

After a promising 1860 range breakout formation, the stock rallied up to 2300. But due to profit booking at higher levels, it witnessed a technical sell-off. However, the medium-term chart structure is still on the positive side.

Bharat Forge

Buy 50% at 760 and rest 50% at 685. Target: Rs 875-930, Rally: 18.6%
Key Support Levels: 730-700-685-645
Key Resistance Levels: 800-850-875-930

For the last couple of months, the stock was hovering between 700 to 800 price ranges. On daily and weekly charts, it has formed double bottom formation and post-formation it reversed sharply. The promising reversal formation from the important support level indicates a strong possibility of a further uptrend from the current levels.

Sun Pharma

Buy 50% at 810 and rest 50% at 730. Target: 930-975, Rally: 19.8%
Key Support Levels: 775-750-730-685
Key Resistance Levels: 850-890-930-975

After forming a range breakout at 700, the stock is consolidating in the range of 750 to 800. Last month, at last, the stock cleared the resistance mark at 800 and managed to close above the same, which is grossly positive. After the breakout, the stock has formed a series of highs and lows that would support the next uptrend

Canara Bank

Buy 50% at 201 and rest 50% at 170. Target: 240-260, Rally: 34.4%
Key Support Levels: 190-183-170-160
Key Resistance Levels: 215-225-240-260

On daily and weekly charts, the stock has formed breakout continuation formation. Post breakout formation it took short-term support near 170 and reversed sharply. In addition, robust higher high and higher low series formation on weekly charts indicate further uptrend from current levels. The texture of the chart suggests, the stock is into a strong uptrend and positive momentum will continue in the near future.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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