Nifty trend bullish for medium-term, support at 16150-16050; buy these stocks for gains

Nifty trend bullish for medium-term, support at 16150-16050; buy these stocks for gains

By Shrikant Chouhan

In the last week, the benchmark index Nifty/ Sensex first time hit the 16000/ 53500  mark and also registered fresh all-time highs of 16349.45 and 54633.58, respectively. Technically, on weekly charts, the Nifty/ Sensex has formed a strong breakout formation, which indicates a further uptrend from current levels. Post breakout the Nifty is consolidating and the intraday charts suggest narrow rage activity likely to continue in the near future.  We are of the view that the medium-term trend is bullish and buying on dips and sell on rallies would be the ideal strategy for the positional traders. 16150-16050 /54000-53500 would be the strong support zone.  Trading above the same uptrend wave is likely to continue till 16400-16550/ 54700-55000. Below 16050/ 53500 breakout traders may prefer to exit from trading long positions.

After a strong uptrend rally, the stock witnessed a short term correction from its all-time high of 467, however, the downward move seems to be over as the counter is trading near its multiple support zone hence we expect revival in trend from the current levels.

WIPRO: BUY, CMP 604, TARGET 635, SL 590

The stock has shown an incredible up move in the past and it is still rising gradually on the higher side. The higher top and higher bottom chart series hints at a bullish continuation pattern to continue in coming sessions, the rise in volume activity in the last few days indicates bullishness in the counter.

TATASTEEL: BUY, CMP 1372.15, TARGET 1440, SL 1340

The stock had been in a phenomenal uptrend forming the bullish continuation chart patterns constantly, presently due to some profit booking a temporary pause in the momentum is seen however a strong reversal is very likely from the support of the retracement zone for further upside.

HINDUNILVR: BUY, CMP 2388, TARGET 2500, SL 2340

On the daily chart, the stock has reversed sharply from its double bottom support zone with a strong bullish candlestick formation, and currently, it is consolidating in a range with decent volume activity, moreover, the formation of hammer candlestick pattern near short term averages suggests range breakout for the further uptrend in the coming horizon.

(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)