Stocks to buy- Nifty may head to 17275, support at 16980; Tech Mahindra, Grasim, others look strong on charts

Stocks to buy: Nifty may head to 17275, support at 16980; Tech Mahindra, Grasim, others look strong on charts

By Shrikant Chouhan

The benchmark indices witnessed a spectacular rally rallying over 200/600 points and hit a fresh all-time high of 17153.50/57982.47. On Tuesday, post muted opening the market hovering in the range of 16915/55676 to 16995/57150. But in the afternoon the Nifty successfully clear 17000/57200 psychological mark and after that intraday breakout, it rallied over 150/600 points. Among sectors, Consumption, Metal and IT witnessed buying interest whereas, some selling pressure was seen in Media and selective Auto stocks. Technically, post-breakout the market continues the bullish continuation formation which is broadly positive.

Technical stocks to buy

Tech MahindraBUY, CMP: Rs 1,447.65, TARGET: Rs 1,520, SL: Rs 1,414

The stock had presented a remarkable up move with the bullish continuation chart patterns continuously, after a breather of few trading sessions the counter is ready for further upward movement from the current levels.

Grasim IndustriesBUY, CMP: Rs 1,500.4, TARGET: Rs 1,575, SL: Rs 1,470

Post formation of the double bottom chart pattern, the reversal is evident in the counter with rising volume activity on the daily chart, additionally, the stock has given a breakout of the sloping trend line which validates reversal of the trend for further up move.

Bharat ForgeBUY, CMP: Rs 767.2, TARGET: Rs 805, SL: Rs 750

The counter has formed a drop base and rally structure from its demand zone with the increasing volume; moreover, close above the short term moving averages on the daily chart are suggesting a bullish trend in the coming horizon.

Tata ChemicalsBUY, CMP: Rs 844.65, TARGET: Rs 888, SL: Rs 825

Post recent correction from the highs of around 890 the stock went into a consolidation phase, eventually, it has formed a rounding bottom chart formation with rising volume and retreated from the lower levels for a fresh leg of uptrend in coming trading sessions.

(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.)