Sun Pharma, Jindal Steel among top stocks to buy, sell; intraday chart suggests Nifty may fall up to 14,130

Sun Pharma, Jindal Steel among top stocks to buy, sell; intraday chart suggests Nifty may fall up to 14,130

By Shrikant Chouhan

The market registered an extremely volatile session, the Nifty/ Sensex closed 63/243 points lower. The Nifty/ Sensex failed to sustain above the 14500/48400 resistance mark and due to consistent selling pressure at higher levels along with tepid global cues the benchmark index corrected sharply. Among sectors, profit booking was seen in IT stocks whereas, Auto, Pharma and selective Media stocks witnessed buying interest.

Jindal Steel and Power Ltd BUY, CMP: Rs 431.55, TARGET: Rs 455, SL: Rs 420

On the daily time frame, after the sharp up move, the stock was into a consolidation phase and finally, it has given a breakout from its Flag chart pattern with incremental volume activity indicating further up move in the coming horizon.

Sun Pharmaceutical Industries LtdBUY, CMP: Rs 645.15, TARGET: Rs 675, SL: Rs 630

The stock is trading into a rising channel pattern making the higher top and higher bottom series on weekly and monthly charts, therefore all major technical trend indicators such as MACD and ADX are strong and intact. Thus upward movement from the current level is very likely to remain in the near term.

Bata IndiaSELL, CMP: Rs 1,297.65, TARGET: Rs 1,230, SL: Rs 1,330

The stock is in a downtrend where the bears are quite strong at the moment as bulls are not able to gain strength, on the monthly scale as well the stock is trading below its rising trend line and short-term moving averages which indicates bearishness in the counter.

RBL Bank SELL, CMP: Rs 174.55, TARGET: Rs 165, SL: Rs 180

Bearish continuation formation is evident in the counter as it is continuously making lower high and lower lows, hence the overall structure of the stock suggest that it is heading to its previous demand zone on the downside

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