Buy Coal India, SBI Cards stocks, charts show strength; fresh uptrend in Nifty possible above 16600

Buy Coal India, SBI Cards stocks, charts show strength; fresh uptrend in Nifty possible above 16600

By Shrikant Chouhan

Profit booking continued in the Indian benchmark indices, the NSE Nifty 50 ended 147 points lower while the BSE Sensex was down by 497 points. Among sectors, except Media all the major sectoral indices registered profit booking at higher levels. Amid sectoral indices, IT index lost the most, shed over 2.8 per cent. Technically, on intraday charts, the indices have maintained lower top formation, it also formed bearish candle on daily charts which suggest further correction from the current levels.

Stocks to buy

L&T Finance HoldingsBUY, CMP: Rs 72.45, TARGET: Rs 77, SL: Rs 70

For the past few sessions, the stock is into a range bound mode with a higher low series formation. Meanwhile, on the daily 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.

SBI Cards and Payment Services BUY, CMP: Rs 892, TARGET: Rs 940, SL: Rs 870

The stock is trading in a rising channel constantly. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength for the counter. Therefore, upward movement from the current level is very likely to remain in the near term.

DLFBUY, CMP: Rs 360.8, TARGET: Rs 380, SL: Rs 352

The counter is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggests that the counter is likely to maintain bullish continuation formation in the near term.

Coal India BUY, CMP: Rs 202.3, TARGET: Rs 213, SL: Rs 197

The stock has given a breakout of the ascending triangle chart formation, which clearly suggests bullish momentum to remain in the short term. In addition, on the weekly scale, the stock has formed a higher bottom formation indicating good strength in the counter for fresh upward movement.

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