Buy ITC, IndusInd Bank, HDFC Life stocks for short-term gains; chart show market short-term trend positive

Buy ITC, IndusInd Bank, HDFC Life stocks for short-term gains; chart show market short-term trend positive

By Shrikant Chouhan

The benchmark indices continued the positive momentum as the Nifty ended 178 points higher while the Sensex was up by 549 points. Among Sectors, all the major sectoral indices were traded in the green but PSU Bank index outperformed, rallied nearly 4 per cent. Technically, on the backdrop of strong global cues, our market opened with a gap up and entire day hovered near 50 day SMA (Simple Moving Average) level. We are of the view that the short-term texture of the market is positive and now 50 days SMA or 17525 and 59150 would act as a key resistance zone for the Nifty and Sensex respectively.

IndusInd Bank: BUYCMP: Rs 1223.25 | Target: Rs 1280| SL: 1190

On the daily charts, the counter has given a breakout of the Symmetrical triangle chart pattern along with decent volume activity. The structure suggests that the counter has enough potential for further upside from the current levels.

HDFC Life: BUYCMP: Rs 531.25 | Target: Rs 560| SL: Rs 520

The stock 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 near its demand zone, which indicates for accumulation at these lower levels. Therefore, upward movement from the current level is expected to resume in the coming sessions.

LIC Housing Finance: BUYCMP: Rs 415.15 | Target: Rs 435 | SL: Rs 405

On a broader time frame, the counter is consolidating in a range-bound mode. In addition, the bullish activity on daily charts near its upper boundary of the trading range indicates that the counter could start its fresh up move from the current levels.

ITC: BUYCMP: Rs 340.3 | Target: Rs 358 | SL: Rs 332

For the last few sessions, the counter was stuck in a range-bound movement and presently we witnessed a range breakout. Moreover, the closing above its short-term moving averages, suggesting that the stock has good strength for further upside.

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