Technical stocks to buy- Nifty faces resistance at 15,680-15,750; TCS, Nestle, Bajaj Auto show rally on charts

Technical stocks to buy: Nifty faces resistance at 15,680-15,750; TCS, Nestle, Bajaj Auto show rally on charts

By Shrikant Chouhan

The Nifty and Sensex have lost 1.50 per cent in the last two days. The Bank Nifty and Nifty Metal indices have fallen more than 3.5 per cent in just two trading sessions. These are indications of leaving long posts. FIIs have been consistently selling in the market and on Monday they sold more than Rs 2,000 crore. This was mainly due to a strong surge in the US bond market. Investors opted for 10-year Treasury bonds rather than equities, and this led to an unprecedented rise in the bond market.

TCS (Tata Consultancy Services)BUY, CMP: Rs 3,205.8, TARGET: Rs 3,360, SL: Rs 3,140

On the weekly scale, the stock faced multiple resistance around 3330 – 3380 levels due to strong supply area which has resulted in the transitory profit booking in the counter. Nevertheless post decline the stock took support at its important retracement zone, and incremental volume indicates reversal from the current levels.

Godrej IndustriesBUY, CMP: Rs 554.85, TARGET: Rs 580, SL: Rs 540

On a broader time frame the counter has formed a Head and Shoulder chart pattern and post breakout it is trading near the neckline support moreover the stock is into a gradual up move with higher high and higher low chart formation on the daily chart that suggest upward movement in coming sessions.

Nestle India BUY, CMP: Rs 17,856.1, TARGET: Rs 18,750, SL: Rs 17,500

The stock had been in a bullish trend forming higher lows on a weekly scale, however, for the last few sessions the counter was stuck in a narrow range and presently we witnessed a range breakout and closing above its short term moving averages hints that the stock has good potential for further upside.

Bajaj AutoBUY, CMP: Rs 3,905.4, TARGET: Rs 4,100, SL: Rs 3,820

After hitting the highs of 4200 the stock went into a corrective pattern, however, it has formed an Inverted Hammer candlestick pattern near its support area supported by the rise in volume activity which hints at strong reversal from the current levels in the near term.

(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. The views expressed are the author’s own. Please consult your investment advisor before investing.)