Buy HDFC Bank, Divis Lab, Tech Mahindra others, charts show near-term gains; Nifty forms long bullish candle

Buy HDFC Bank, Divis Lab, Tech Mahindra others, charts show near-term gains; Nifty forms long bullish candle

By Shrikant Chouhan

Bulls continued positive momentum for the third day in a row, the NSE Nifty 50 ended 62 points higher while the BSE Sensex settled 246 points up. Among sectors, strong buying was seen in reality and banking stocks. Amid sectoral indices, reality was the top gainer rallying nearly 2.5 per cent. Technically, the Nifty/Sensex not only cleared the short-term resistance of 16300/54500 but they also succeeded to close above the same which is broadly positive.

Technical stocks to buy

HDFC Bank BUY, CMP: Rs 1,348.05, TARGET: Rs 1,415, SL: Rs 1,320

The stock was into a sloping channel from the past few sessions. The recent price correction from its supply zone has plunged the counter to its important support area. As a result, the pullback rally is very likely for further up move in the near term.

Divi’s Laboratories BUY, CMP: Rs 3,753.25, TARGET: Rs 3,950, SL: Rs 3,670

On the daily chart, post reversal from its support zone the stock is into a gradual up move in a rising channel pattern. The texture of the chart pattern suggest upward movement from the current level in the coming horizon.

Rain Industries BUY, CMP: Rs 152.25, TARGET: Rs 160, SL: Rs 148

On a monthly scale, post its downward move the counter took support at important retracement zone. In addition, on the daily charts, the counter has given a breakout of the Symmetrical triangle chart pattern along with decent volume activity, which suggests that the counter has enough potential for upside from the current levels.

Tech MahindraBUY, CMP: Rs 1,007.7, TARGET: Rs 1,060, SL: Rs 987

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 accumulation at these lower 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.)