Stocks to buy- Nifty may rally to 16,750, charts suggest; RIL, SBI, Wipro stocks likely to gain more

Stocks to buy: Nifty may rally to 16,750, charts suggest; RIL, SBI, Wipro stocks likely to gain more

By Shrikant Chouhan

After a sharp fall, in the current week the benchmark indices opened with a gap and post strong opening the index was hovering in the range of 16450-16600. However, on Tuesday in the late afternoon, it finally cleared the resistance of 16590 and succeeded to close above the same which is broadly positive for the market.

Technical stocks to buy

WiproBUY, CMP: Rs 632.50, TARGET: Rs 662, SL: Rs 617

The stock is in the strong uptrend wave, on daily and weekly charts it has formed strong breakout continuation formation. Rs. 617 would be the key support level for the trend following traders, above the same uptrend wave likely to continue up to Rs. 662.

Reliance Industries Ltd (RIL)BUY, CMP: Rs 2,178, TARGET: Rs 2,265, SL: Rs 2,135

The stock is consistently taking support near 50 day SMA, on daily charts it has formed strong reversal formation which indicates further uptrend from current levels. For the positional traders, 10 day SMA or Rs. 2135 would be the sacrosanct support level, above the same reversal wave likely to continue till Rs. 2265.

Bajaj AutoBUY, CMP: Rs 3,717, TARGET: Rs 4,865, SL: Rs 3,640

From the last couple of months the stock is witnessing price correction, currently, the stock is trading near 200 day SMA. The oversold texture suggests high chances of pullback rally from current levels. We are of the view that, 200 day SMA would act as a key support zone and strong pullback rally is not ruled out if it succeeds to trade above Rs. 3640 level.

State Bank of India (SBI)BUY, CMP: Rs 417, TARGET: Rs 438, SL: Rs 408

In this month so far, the stock corrected over 5 percent. After a short term correction the stock has formed Hammer followed by bullish candle formation. Which is broadly positive for the SBI Ltd. Currently, the stock is trading near its previous support level and momentum indicators suggest high chances of fresh uptrend rally if the stock succeeds to trade above Rs. 408.

(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)