Stocks to buy: Nifty may hit 16,050, Bank Nifty 35,700 in near-term; charts show HDFC Life, others may rally
By Shrikant Chouhan
The Nifty/Sensex has risen by 1800/5400 points in the last 37 days. Nifty Metal, IT, Midcap and Small Cap indices are the top performers. Reliance Industries Ltd (RIL) has also contributed approximately 20 per cent in the current up move of the market. FMCG and Pharma are far behind this time. The Nifty/Sensex has a strong base between 15500/ and 15600. However, currently, the market is trading at the highest point of the current up move and we are witnessing mixed reaction in the market.
India CementsBUY, CMP: Rs 188.4, TARGET: Rs 199, SL: Rs 183
Post formation of double bottom chart pattern a strong recovery is seen in the counter with incremental volume activity on the daily chart, additionally, the stock has given a breakout of the supply trend line which endorses reversal of the trend for further up move.
HDFC Life Insurance CompanyBUY, CMP: Rs 692.55, TARGET: Rs 727, SL: Rs 675
Post breakout from the levels of 685 the stock has been hovering in a range-bound mode but recent bullish engulfing candlestick formation with rising volume indicates that the bulls are back and the stock is ready for its uptrend continuation in the near term.
IndusInd BankBUY, CMP: Rs 1,034.45, TARGET: Rs 1,085, SL: Rs 1,010
For the past few trading sessions, there is a narrow range activity within the rising channel of the counter without any meaningful rise, at the same time a surge in volume is seen near the breakout zone along with Inverted Hammer candlestick pattern which hints at a strong up move in coming sessions.
MphasisBUY, CMP: Rs 2,061.45, TARGET: Rs 2,165, SL: Rs 2,020
The stock has shown a remarkable rally in the past many months and the trend of the stock is still in the rising direction. The Higher high and higher low chart formation is evident in the counter, additionally, the rise in volume activity in the last few days is indicating bullish continuation pattern in the near future.
(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)
