Buy BPCL, SBI Life, HCL Tech, JSW Steel, charts show gains in near-term; Nifty above 15750 could reclaim 16000

By Shrikant Chouhan

The benchmark indices witnessed range bound activity, the NSE Nifty 50 ended 18 points up, while BSE Sensex gained 16 points. Among sectors, some buying was seen in Metal and Auto stocks whereas banking and financial stocks were under pressure. Technically, after an early morning sell-off, the indices took the support near 15700/52750 and bounced back sharply. They also formed small bullish candles on daily charts. We are of the view that, as long as the indices are trading above 15750/52900 the uptrend formation is intact. Above which indices could move up to 15950-16000/53500-53700. On the flip side, a fresh round of selling is possible, if the indices succeed to trade below 15750/52900. Below which, these could retest the level of 15700-15650/52700-52500.

Technical stocks to buy

JSW Steel
BUY, CMP: Rs 578.4, TARGET: Rs 610, SL: Rs 565

For the past few sessions, the stock is into a range bound mode with a higher low series formation. Meanwhile, on the daily scale, it has formed an ascending triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.

Bharat Petroleum Corporation Ltd (BPCL)
BUY, CMP: Rs 318.6, TARGET: Rs 335, SL: Rs 310

Post correction from the higher levels, the counter has seen a vertical slide on the downside. However, it has reversed its trend from the oversold territory. Additionally on the daily scale, it is trading in a rising channel with decent volume activity, which indicates bullish momentum to continue in the coming trading sessions.

SBI Life
BUY, CMP: Rs 1,078.05, TARGET: Rs 1,130, SL: Rs 1,055

The counter is trading in a narrow range with decent volume activity near its retracement support zone. The formation suggests that the stock is into the accumulation phase, however, the recent formation of a doji candlestick pattern is indicating a strong reversal from the current levels in the coming horizon.

HCL Technologies
BUY, CMP: Rs 1,001.95, TARGET: Rs 1,055, SL: Rs 980

The stock was into a sloping channel from the past few weeks. Eventually, its downward move stopped near the important demand zone. Moreover, the strong rebound in the counter and recent trend line breakout confirms that the bullish momentum will remain in the near future.

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

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