Nifty trades range-bound activity, could rally till 19525; GCPL, InterGlobe Aviation, Voltas among stocks to buy

Nifty trades range-bound activity, could rally till 19525; GCPL, InterGlobe Aviation, Voltas among stocks to buy

By Shrikant Chouhan

The benchmark indices witnessed range bound activity. Nifty ended 3 points higher while the Sensex closed 4 points higher. Among sectors, selective PSU Banks and pharma stocks witnessed intraday profit booking at higher levels. Technically, currently the market is witnessing non-directional activity on the higher side, as it is consistently taking resistance near 19,450 while on the lower side regularly taking support near 19,375. For the bulls now, fresh uptrend rally is possible only after dismissal of 19,450 above which, the index could rally till 19,500-19,525. On the flip side, the dismissal of 19,375 could accelerate the selling pressure. Below which, the market could slip till 19,325-19,300.

Godrej Consumer Products is into a gradual up move with a higher low series on the daily chart. Additionally, it has formed a Cup and Handle chart pattern with a decent volume activity. Therefore, the breakout of the range for moving further upside is very likely to occur in the near term.

Voltas

Buy | CMP: Rs 822 | Target: Rs 865 | SL: Rs 805

Voltas had been in a declining trend in the past few sessions. However, at present there is a pause in its downward movement due to its demand zone. Moreover, the counter is available near to its important retracement levels, which could act as a strong base in the coming horizon. Hence, bullish trend is expected to resume from the current levels.

LTIMindtree

Buy | CMP: Rs 5,141 | Target: Rs 5,400 | SL: Rs 5,040

For the past few sessions, LTIMindtree is in a range bound mode with a higher low series formation. Meanwhile, on the weekly scale, it has formed an ascending triangle chart pattern. The structure indicates breakout from the current levels and the beginning of a new up move in the counter.

InterGlobe Aviation

Buy | CMP: Rs 2,471.85 | Target: Rs 2,590 | SL: Rs 2,420

InterGlobe Aviation has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range bound mode, which indicates accumulation at these levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)