Stocks to buy- 15,670-15,800 key trading area for Nifty, F&O expiry major trigger; TCS, Tata Motors may rally

Stocks to buy: 15,670-15,800 key trading area for Nifty, F&O expiry major trigger; TCS, Tata Motors may rally

By Shrikant Chouhan

On the weekly basis, we saw a spectacular recovery in the market. Last week, the market moved to the 15450 level, which was the previous highest level for the market, however, as the market fell on that support, we saw a broad-based recovery in the market. Commodities and financials joined the rally, signaling market readiness to push back the 16000 levels.

If the market takes time to surpass the 15900 levels, the momentum would shift in defensive sectors (FMCG, technology and pharmaceuticals). However, after the dismissal of 15900, the commodities and financial stocks would support the market to surpass 16000 levels.

Tata Consultancy Services (TCS)BUY, CMP: Rs 3,304, TARGET: Rs 3,470, SL: Rs 3,230

The stock is trading into a Rising Channel chart formation making the higher top and higher bottom series on a weekly and monthly scale, as a result, all major technical trend indicators such as Macd and ADX are strong and steady. Therefore upward movement from the current level is very likely to continue in the coming sessions.

Divis LaboratoriesBUY, CMP: Rs 4,297, TARGET: Rs 4,510, SL: Rs 4,210

The stock is into a strong uptrend and any minor correction is seen as a buying opportunity by the bulls, recently after the strong upside rally till 4400 the stock had faced resistance which resulted in the gradual down move but eventually, it found support near 30 Days SMA and reversed with a strong bullish candlestick formation, hence we expect the rising trend to persist from the current levels.

SBI Life Insurance CompanyBUY, CMP: Rs 1,005, TARGET: Rs 1,055, SL: Rs 985

For the past few trading sessions, the stock is trading in a rectangle formation near its previous highs and holding well above its short term moving averages hence a strong base has been shaped for the new leg of an uptrend for the counter, additionally the rising volume along with strong bullish candlestick pattern indicates for a fresh up move in the near term.

TATA MotorsBUY, CMP: Rs 337.25, TARGET: Rs 355, SL: Rs 330

On a broader time frame, the stock has formed Higher High and Higher Low chart pattern which lead it to upward movement, however, the recent price correction from its resistance area has plunged the counter till its important retracement zone as a result the pullback rally is seen for further up move from the current levels.

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