Nifty looks set to hit all-time high of 15,450 in near-term; ICICI Bank, L&T among top stocks to buy

By Shrikant Chouhan

Since the beginning of the week, the market is gaining on the theme of economic recovery and a sharp decline in the covid19 active cases. The market players have chosen financials to bet on and the Bank-Nifty jumped to 34000 without any major efforts. We are also witnessing the buying in Commodities and Auto stocks. The Nifty/Sensex has surpassed the levels of 14970 and 15045 (49700/50000) with broad-based participation.

Technical stocks to buy

Larsen & Toubro (L&T) BUY, CMP: Rs 1,421, TARGET: Rs 1,490, SL: Rs 1,390

In the short term time frame after forming a double top pattern around 1550 zone, the stock went into a gradual downward movement, and eventually post accumulation near support area it turned its move into a rising channel formation with a higher high and higher low series indicating bullish momentum to sustain in coming days.

Larsen & Toubro Infotech (LTI) BUY, CMP: Rs 3,656, TARGET: Rs 3,840, SL: Rs 3,580

A strong reversal formation is evident near the support area post-formation of the double bottom chart pattern on the daily scale, additionally, a hammer candlestick formation supported by incremental volume, activity is indicating a strong trend reversal from the current levels.

ICICI Bank BUY, CMP: Rs 633, TARGET: Rs 665, SL: Rs 620

The stock has given a breakout of its Ascending Triangle chart pattern with decent volume activity on the daily chart, moreover, all major technical trend indicators such as Stochastic and ADX are showing good strength for momentum to sustain. Thus strong bullish move from the current levels is very likely in the coming horizon.

Hero MotoCorp BUY, CMP: Rs 2,914, TARGET: Rs 3,060, SL: Rs 2.850

Post decline from the peaks of 3600, the stock went into an accumulation phase near its multiple support area of 2750-2850, as a result, a good base is formed in that region, and therefore the stock is showing good strength after the breakout of its 20 Days EMA with the rising volume indicating a fresh uptrend in the counter.

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