Cipla, HDFC among 4 technical stocks to buy; Nifty may go down to 15,450 if it falls below 15,670

Cipla, HDFC among 4 technical stocks to buy; Nifty may go down to 15,450 if it falls below 15,670

By Shrikant Chouhan

The weekly opening of the Nifty / Sensex was positive, the benchmark index Nifty/ Sensex opened at 15915.65/ 53126.73 but due to lack of follow-through buying it fell to 15800/52700 levels. Among sectors, the Metal stocks continue the positive momentum and strong buying was in PSU Banks while intraday profit booking was in HDFC Life Insurance Company and selective IT stocks.

The market has spent almost two weeks below the 15902 levels, however, if this level is broken, the Nifty would have to move to the 16050/16150 (53750) level. According to options statistics and retracement levels, the Nifty / Sensex would find support at 15800/52800 and 15670/52300 levels. If Nifty/Sensex derail below 15670/52300 and they could fall to 15550/51800 or 15450/51500 levels. Our strategy should be to reduce the position between the levels of 16050/16150 (53750).

LTI (Larsen & Toubro Infotech) BUY, CMP: Rs 4,134.15, TARGET: Rs 4,350, SL: Rs 4,050

Post formation of double bottom chart pattern around 3550 zone LTI showed a remarkable uptrend till 4200, after this strong rally it is witnessing a range-bound activity for the last few sessions and has formed a Cup and Handle chart pattern with the decent volume therefore the breakout of the range for moving further upside is very likely to occur in the near term.

CIPLA BUY, CMP: Rs 979.6, TARGET: Rs 1,030, SL: Rs 960

The stock has presented a robust rally for the last many months and still it is in the upward direction, the stock is constantly forming the Higher High and Higher low series pattern moreover recent price volume breakout indicates bullish momentum to sustain in coming days.

Housing Development Finance Corporation (HDFC)BUY, CMP: Rs 2,501.2, TARGET: Rs 2,630, SL: Rs 2,450

For the past few sessions, the counter is trading in a narrow range with incremental volume activity near its support zone which suggests that the stock is into the accumulation phase; however recently the formation of a Hammer candlestick pattern is seen in the counter which indicates strong reversal in the coming horizon.

MPHASISBUY, CMP: Rs 2,086.15, TARGET: Rs 2,190, SL: Rs 2,040

After hitting the all-time high of 2133 the counter has witnessed a range bound activity for a few sessions however current range breakout with incremental volume along with the formation of strong bullish candlestick pattern indicates that the counter has enough potential for further upside from current levels.

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