By Shrikant Chouhan
On Tuesday, the benchmark indices witnessed narrow range activity. Nifty ended 35 points higher while the Sensex was up by 123 points. Among sectors, buying was seen in media and selective private banks stocks, whereas metal stocks witnessed intraday profit booking at higher levels.
Stock Recommendations
REC
BUY | CMP: Rs 140.3 | TARGET: Rs 148 | SL: Rs 137
The stock is trading into a rising channel pattern forming the higher lows series continuously. The strong bullish activity on the daily chart suggests that REC is likely to maintain bullish continuation formation in the near term.
Aditya Birla Capital
BUY | CMP: Rs 171.4 | TARGET: Rs 180 | SL: Rs 166
After the robust rally in the past few weeks, Aditya Birla Capital went into a range bound mode. At present, the stock is seen coming out of the consolidation phase with a range breakout. Hence, the formation indicates a further uptrend from the current levels.
UltraTech Cement
BUY | CMP: Rs 7,895 | TARGET: Rs 8,280 | SL: Rs 7,740
UltraTech Cement has shown a remarkable rally from the lows in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low series on daily chart formation is evident in the counter. Hence, the formation is indicating a bullish continuation pattern to continue in the coming horizon.
Mphasis
BUY | CMP: Rs 1,971 | TARGET: Rs 2,070 | SL: Rs 1,930
On the weekly chart, post reversal from its double bottom support zone, Mphasis is into a gradual up move and is into a rising channel chart pattern. It has also formed an ascending triangle chart pattern on the daily scale. The structure indicates breakout from the current levels and the beginning of a new up move for the counter in the near future.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)