Nifty range bound activity likely to continue; Wipro, DLF among stocks to buy

Nifty range bound activity likely to continue; Wipro, DLF among stocks to buy

By Shrikant Chouhan

On last Tuesday, the benchmark indices witnessed range bound activity while clocking modest gains on Wednesday. Technically, after a reversal formation, the market is witnessing range bound activity near 20 day SMA (Simple Moving Average). The texture of the chart indicates range bound activity is likely to continue in the near future.

Stock picks

Union Bank of India | BUY | CMP: Rs 90.45 | Target: Rs 96 | SL: Rs 87

After the robust rally from the lower levels, Union Bank took a breather for a few sessions with a gradual down move. However, there is a strong reversal along with the formation of a bullish Marubozu candlestick pattern with a good volume. The overall formation suggests a strong up move to continue in the counter in the coming horizon.

Wipro | BUY | CMP: Rs 416.2 |Target: Rs 440 | SL: Rs 405

Wipro has given a breakout of its Ascending Triangle chart pattern on the weekly scale. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of Wipro indicates bullish interest and hints at an up move to persist in the near term for further bullish trend.

Tata Steel | BUY | CMP: Rs 118.15 | Target: Rs 125 | SL: Rs 115

After the sharp up move, Tata Steel witnessed selloff and dropped on the lower side. However, it has found support and is consolidating near the important retracement zone. Therefore, the bullish trend is very likely to resume from the current levels in the near term.

DLF | BUY | CMP: Rs 488.1 | Target: Rs 515 |SL: Rs 477

After hitting the recent highs of 520, due to the supply pressure DLF plunged on the downside. However, DLF took the support and retreated from the lower levels. Post reversal, it has formed double bottom chart formation on the daily scale which indicates a fresh leg of uptrend in DLF.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)