Nifty fresh rally possible above 17620, market texture volatile; Buy HDFC Bank, SBI Life, charts show strength

Nifty fresh rally possible above 17620, market texture volatile; Buy HDFC Bank, SBI Life, charts show strength

By Shrikant Chouhan

The benchmark indices BSE Sensex and Nifty 50 witnessed a sharp price correction on Tuesday. NSE Nifty 50 ended 153 points lower while the Sensex settled 412 points down. On Tuesday, after a gap-down opening, Nifty/Sensex broke the 17600/58876 import support level, which was previous week’s lowest level and succeeded to close below the same that is largely negative. Among sectors, Reality and Metal indices lost the most, shed over 2.5 per cent whereas banking stocks recovered sharply from the day’s lowest levels. Technically, after a long time, Nifty closed below 10 day SMA and is also holding lower high formation on intraday charts.

Technical stocks to buy

CoforgeBUY, CMP: Rs 4,147.1, TARGET: Rs 4,350, SL: Rs 4,060

On the weekly scale, the stock is trading in a range bound mode near its demand zone. Moreover, on the daily chart, the counter has formed a double bottom chart pattern. Therefore, upward movement from the current level is very likely in the coming horizon.

HDFC Bank BUY, CMP: Rs 1,493.5, TARGET: Rs 1,570, SL: Rs 1,460

On the daily time frame, after the sharp up move, the stock witnessed price decline. However, rebound is seen from the important retracement support zone. The incremental volume activity indicates the counter is likely to resume a new leg of the uptrend from the current levels.

AstralBUY, CMP: Rs 2,129.45, TARGET: Rs 2,230, SL: Rs 2,080

The counter is into a gradual up move with a higher low series on the daily scale. Additionally, it has formed an triple bottom chart pattern on intraday charts. Therefore, the structure suggest upward momentum to sustain in the near term.

SBI Life Insurance Company BUY, CMP: Rs 1,149.1, TARGET: Rs 1,210, SL: Rs 1,120

The counter has formed an inverse head and shoulder chart pattern on daily charts. Therefore, sustaining above the breakout of the range indicates a new leg of uptrend from current levels

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)