By Shrikant Chouhan
The benchmark indices witnessed a sharp recovery rally, after a volatile trading session the Nifty ends 68 points higher while the Sensex was up by 141 points. After a weak opening, finally the Nifty took the support near 17200/57700 and reversed sharply. Among sectors, strong buying interest was seen in Metal stocks, as a result, the Nifty Metal index rallied nearly 3.5 percent.
Bharti Airtel: BUY CMP – Rs 757.25 | TARGET – Rs 795 | SL – Rs 740
The stock has given a breakout of its Ascending Triangle chart pattern with a strong bullish candlestick, additionally on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates the beginning of a new up move in the counter.
HCL Technologies: BUYCMP – Rs 1115.75 | TARGET – Rs 1170 | SL – Rs 1090
Post correction from the highs of 1360, there is a pause in a downtrend and the counter is consolidating in a range with decent volume activity near its retracement support zone, which suggests that the stock is getting bullish interest as it is into oversold territory, therefore we expect a strong reversal in the coming horizon.
Grasim Industries: BUYCMP – Rs 1776.8 | TARGET – Rs 1870 | SL- Rs 1740
On the daily chart, after the upward movement, the stock witnessed profit booking on higher levels, but eventually, it took support at a Fibonacci retracement zone, moreover, the incremental volume activity near the support area is indicating reversal from current levels.
Indiabulls Housing Finance: BUYCMP – Rs 216.45 | TARGET – Rs – 230 | SL – Rs 212
The stock is broadly trading in a range of 200 to 250 and currently, it is available near the lower range of the boundary post its short term correction, therefore, the further downward move seems to be restricted and hence we expect revival in trend from the current levels in coming trading sessions.
(Shrikant Chouhan is Head of Equity Research (Retail) at Kotak Securities Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)