Benchmark indices NSE Nifty 50 and BSE Sensex are expected to touch new highs in Samvat 2079, the Hindu New Year. Analysts at Kotak Securities believe that technically, the chances of Nifty and Sensex reaching a level above 20000 and 66000 respectively in Samvat 2079 are higher than the indices falling to 15000 and 51000 again. “In Samvat 2078, the benchmark indices recorded volatile and range-bound movement between the 18500 and 15500 levels. We are of the view that the medium-term market structure is volatile and non-directional. Perhaps traders are waiting for a breakout on either side,” analysts at Kotak Securities said.

Nifty may hit 20000; Sensex may claim 66000

In the near future, 16500-16000 and 55000-54000 will act as a sacrosanct support zone while 18000-18500 and 60000-61500 could be the major hurdle zone for the bulls on Nifty and Sensex respectively. If the Nifty crosses the resistance of 18500, and Sensex tops 61500 then the Nifty would move towards 19500-20000 and Sensex may head to 64500-66000. On the other hand, a 16000 and 54000 dismissal could send the market to 15000 and 51000 level in the worst case. “Even though we have seen a range bound market, we feel our market outperformed despite constant selling pressure from FIIs, INR falling to 83, an extensive war between Russia and Ukraine and a rate hike from RBI,” analysts at Kotak Securities said.

Diwali 2022: Top technical stock picks

HCL Tech
Buy 50%: Current market | Buy 50%: Rs 920 | Target: Rs 1250 | SL: Rs 880

After a long medium-term correction, HCL technologies stock finally found support near 880 and started an upside move. After promising reversal formation, the stock has formed a strong double-bottom formation on the weekly and monthly charts, according to the brokerage. “Modest volume activity and a reversal formation near important support areas indicate further upside from current levels. Based on the broad structure of the stock, we should consider adding it in a staggered manner,” it said.

IRCTC
Buy 50%: Current market | Buy 50%: Rs 690 | Target: Rs 950 | SL: Rs 650

The stock was at 1279 in the month of October 2021, from there the stock corrected to the level of 557, which was 61.80% of the previous up move. “Technically, it is on the verge of forming a Cup with Handle formation, which is a Bullish Consolidation Formation to it. Based on this, in the long run, the stock may move back towards the 1280 level, however in the short to medium term the stock would move towards 950 with major resistance at 850,” analysts said.

ITC
Buy 50%: Current market | Buy 50%: Rs 300 | Target: Rs 400 | SL: Rs 275

So far this year, the stock has climbed more than 50 per cent, rising from 207 to 349. “After a double bottom formation on the weekly and monthly charts, the stock successfully crossed the crucial resistance of 285 and accelerated the positive momentum after the breakout. Technically, on the weekly chart, the stock has formed a breakout continuation,” analysts at Kotak Securities said. According to them, chart formation suggests breakout continuation formation is likely to continue in the medium to long term. “Looking at the overall pattern, it will provide buying opportunities for positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue till 400. Resistance will be at 340 and 370.

Max Health
Buy 50%: Current market | Buy 50%: Rs 400 | Target: Rs 600 | SL: Rs 370

Since September last year, the stock has been in rectangle consolidation between the trading range of 310 and 450. “If we consider the volume indicator, then it is supporting the broader price pattern. On reversal from the lower levels, it is crossing the average traded volume line.,” the analysts said, noting that the sectoral performance is stronger than other sectors, which will help the stock cross the upside barrier, which is at 450. If the 450 level is crossed, technically the stock is expected to move up to 600. Resistance is at 500 and 560.

M&M Finance
Buy 50%: Current market | Buy 50%: Rs 190 | Target: Rs 269 | SL: Rs 175

In recent days, the stock has made a new 52-week high of 235.10 but due to profit-booking at higher levels, it corrected sharply. However, the mid-term chart structure of the stock is still on the positive side, according to the brokerage. After a quick short-term correction, the stock took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. “Technically, an upward-sloping trend line formation, 200-day SMA (Simple Moving Average) support level and a strong reversal formation structure suggest that the uptrend wave is likely to continue in the medium term,” it said.

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