Stocks to buy: Nifty may rally if it crosses 15,800; BPCL, Infosys shares look strong on charts

By Shrikant Chouhan

The Nifty 50 index is heading for the levels of 16000/16200 in the next few weeks and the downside is protected to 15400 levels. Also in the absence of support from the cyclical stocks, defensives are offering significant support to the market, which is grossly positive for the market. The AGM of the index giant Reliance Industries Ltd (RIL) is scheduled for the 24th of June that will keep the traders and market excited about the outcome. Also, few index heavyweights like ITC and Bharti Airtel delivered decent numbers but have not participated in the current run-up of the market. If they start participating then it is likely that would send the market beyond 16000 levels.

Technical stocks to buy

Aurobindo PharmaBUY, CMP: Rs 972.1, TARGET: Rs 1,020, SL: Rs 950

On the daily chart, after hitting the all-time high of 1063 the stock went into a gradual downtrend, however, for the past few days the stock was hovering near its 50 Days EMA and eventually, it made a double bottom chart pattern and reversed from the support zone for a new leg of upward movement.

HDFC Life Insurance CompanyBUY, CMP: Rs 689.7, TARGET: Rs 725, SL: Rs 675

For the past few weeks the stock was into an accumulation phase where it was trading in a rectangle formation, as a result, a good demand zone is created around 660-670 area which will act as an strong base for the counter. Recently the stock has given a strong breakout of the range with incremental volume activity signaling for a bullish up move in the near term.

Bharat Petroleum Corporation Ltd (BPCL)BUY, CMP: Rs 487.45, TARGET: Rs 510, SL: Rs 475

The stock is continuously trading in an ascending channel formation which clearly suggests bullish momentum is likely to remain in the short term. In addition, on the daily charts, the stock has formed a higher bottom formation with a strong bullish candlestick pattern indicating good strength in the counter.

InfosysBUY, CMP: Rs 1,412.95, TARGET: Rs 1,490, SL: Rs 1,380

After the strong uptrend rally from 1300 to 1390, the stock witnessed a narrow range activity for few sessions and has formed a Cup and Handle chart pattern with the rising volume and eventually the stock broke out of the range for moving further upside forming bullish continuation pattern.

(Shrikant Chouhan is Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own)