By Shrikant Chouhan
The benchmark indices continued positive momentum for the second day in a row. The Nifty 50 index ended 147 points higher while the BSE Sensex was up by 477 points. Among sectors, almost all the major sectoral indices traded in the green but the auto and smallcap index outperformed. After a strong opening, Nifty hovered within the range of 17160-17250 and BSE Sensex in the 57650-57950 range. Technically, after a long time, the Nifty succeeded to close above the 20 day SMA which is broadly positive.
Technical stocks to buy
HDFC BankBUY, CMP: Rs 1,460.8, TARGET: Rs 1,530, SL: Rs 1,430
Post consolidation for a few sessions near the support zone, the counter has given a breakout of its range bound move and it has formed a star candlestick formation which suggests reversal of trend and bullish strength for a fresh up move from the current levels.
Reliance Industries Ltd (RIL)BUY, CMP: Rs 2,398.4, TARGET: Rs 2,520, SL: Rs 2,350
The stock was into a sloping channel after hitting the highs of around 2750, eventually, its downward move stopped near the retracement support zone and the strong rebound is seen in the counter, recent trend line breakout confirms bullish momentum to remain in the coming time horizon.
Berger Paints IndiaBUY, CMP: Rs 752.6, TARGET: Rs 790, SL: Rs 735
For the past few weeks, the stock was seen into a range bound mode, and presently the counter is trading near the breakout line of the Symmetrical triangle chart pattern. Hence, the recent price action indicates a strong breakout is very likely in a few trading sessions.
DLFBUY, CMP: Rs 385.8, TARGET: Rs 405, SL: Rs 377
The counter has reversed from its trend line support and it is in a gradual up move which indicates that the counter has potential for further bullish movement from the current levels.
(Shrikant Chouhan is Head of Equity Research (Retail) at Kotak Securities. Views expressed are the author’s own.)