By Shrikant Chouhan
The benchmark indices NSE Nifty 50 and BSE Sensex continued positive momentum on Tuesday. After a muted opening, the Nifty/Sensex slipped over 50/150 points, but one more time they took support near 17850/59850 and reversed sharply. Among sectors, PSU bank stocks outperformed, and the Nifty PSU Bank index rallied over 3 per cent. While profit booking was seen in IT stocks. Technically, on daily and intraday charts, the index has formed promising higher bottom formation.
Stocks to buy
Havells India BUY, CMP: Rs 1,421, TARGET: Rs 1,490, SL: Rs 1,390
The stock had been forming higher lows on the daily chart, however, for the last few sessions the counter was stuck in a range-bound move and presently we witnessed a range breakout and closing above its short-term moving averages suggest that the stock has good strength for further upside.
Bank of Baroda BUY, CMP: Rs 87.9, TARGET: Rs 95, SL: Rs 84
The counter is into an upward momentum and post breaking out of its previous highs there is a pause in the momentum, on the monthly scale, it has formed a Cup and Handle chart pattern with the decent volume therefore the follow-up bullish movement is very likely to occur in the near term.
Axis Bank BUY, CMP: Rs 796.5, TARGET: Rs 840, SL: Rs 780
The stock has presented an incredible up move in the last many months and it is trading in a rising channel continuously. The higher high and higher low chart formations are visible in the counter, additionally, trend indicators such as MACD and ADX are showing bullish strength. Therefore upward movement from the current level is very likely to remain in the near term.
Escorts BUY, CMP: Rs 1,517.2, TARGET: Rs 1,590, SL: Rs 1,485
On the monthly scale, the stock has presented a robust rally and presently the counter is trading in a range forming the Symmetrical triangle chart pattern. However, the recent price action indicates a strong breakout is very likely in the coming time horizon.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own.)
