After uptrend, Nifty witnessing range-bound activity; buy TechM, BPCL, others to pocket short-term gains

After uptrend, Nifty witnessing range-bound activity; buy TechM, BPCL, others to pocket short-term gains

By Shrikant Chouhan

After a promising uptrend rally the market witnessing range bound activity. However, the short term uptrend formation is still in to the positive. In addition, on intraday charts the index is consistently forming higher bottom formation which is also supportive for the bulls. we are of the view that, as long as the index is trading above 18,200 the uptrend formation is likely to continue. Above which, the index could move up till 18,400-18,475. On the flip side, below 18,200 the market could slip till 18,125-18,100.

Tech MahindraBUY | CMP: Rs 1048: TARGET: Rs 1100 | SL: Rs 1025

After the sharp up move, Tech Mahindra is trading in a range-bound movement well above its short term moving averages. As a result, the formation of a Flag chart pattern on the daily scale is formed which points to bullish movement to resume in the near term.

BPCLBUY | CMP: Rs 366.3 | TARGET: Rs 385 | SL: Rs 359

BPCL has shown a remarkable rally from the lows in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low series on weekly chart formation is evident in the counter. Hence, the formation is indicating a bullish continuation pattern to continue in the coming horizon.

ICICI BankBUY | CMP: Rs 933.25 | TARGET: Rs 980 | SL: Rs 915

ICICI Bank 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. Therefore, upward movement from the current level is very likely to remain in the near future.

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