Stocks to buy- HDFC Life, Coal India among top money-making stocks; Nifty resistance at 18500-18550

Stocks to buy: HDFC Life, Coal India among top money-making stocks; Nifty resistance at 18500-18550

By Shrikant Chouhan

On Tuesday, the market finally came down with the support of the broader market. The sectors other than technology closed in the negative territory. The Nifty 50 index was at 18604, however, it closed at 18419 at the lowest point of the day. On a daily basis, the market closed at the lowest level of the previous day after a continuous run of nearly 12 days. During the same period, the market increased by 1150 points, however, the market must have taken a breather as the run-up was overextended.

Stocks to buy

L&T Finance Holdings BUY, CMP: Rs 92.25, TARGET: Rs 99, SL: Rs 89

The stock is trading into a rising channel pattern forming the higher top and higher bottom series on the weekly scale, post-breakout the counter witnessed a bit of a selling pressure which resulted in retesting of the trend line. Thus bullish continuation from the current level is very likely to remain in the near term.

Coal India BUY, CMP: Rs 184.5, TARGET: Rs 195, SL: Rs 179

The stock had given a very impressive up move in the recent past by forming a bullish continuation chart pattern, presently due to some profit booking, there is a momentary pause in the uptrend however it seems that a strong reversal is very likely from the double bottom support zone on the daily chart for further upward movement.

Tech Mahindra BUY, CMP: Rs 1,539.1, TARGET: Rs 1,620, SL: Rs 1,505

Post its decline from the levels of 1540 the counter went into a narrow range-bound movement and it came out of the range with a series of strong bullish candlestick patterns which should move the stock further on the higher side in coming sessions.

HDFC Life Insurance CompanyBUY, CMP: Rs 702.8, TARGET: Rs 740, SL: Rs 685

The counter had been in a strong uptrend move however the recent price correction from its supply zone has plunged the counter to its important retracement support area, as a result the pullback rally is very likely from the current levels.

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