By Shrikant Chouhan
On last Tuesday, the benchmark indices witnessed a volatile trading session, Nifty ended 77 points higher while Sensex gained 261 points. Among sectors, selective IT stocks registered buying interest at lower levels whereas profit booking continues in media stocks, as a result the media index shed over 1 percent. Technically, after an early morning intraday sell off, the index took support near 18,650, it bounced back sharply. From the day’s lowest level, the index rallied over 140 points.
Stocks to buy
L&T Technology Services
BUY | CMP: Rs 3,998 | Target: Rs 4,200 | SL: Rs 3,900
For the last few weeks, L&T Technology Services was stuck in a range bound movement and presently we witnessed a range breakout on the daily scale. Moreover, the closing above its resistance zone along with decent volume activity suggests that the counter has good potential for further upside in the near future.
Eicher Motors
BUY | CMP: Rs 3,565 | Target: Rs 3,750 | SL: Rs 3,490
Eicher Motors had been in a declining trend in the past few sessions. However, at present there is a pause in its downward movement due to its demand zone. Moreover, the counter is available near to its important retracement levels, which could act as a strong base in the coming horizon. Hence, the bullish trend is expected to resume from the current levels.
Hindalco
BUY | CMP: Rs 429 | Target: Rs 450 | SL: Rs 420
On the daily chart, post reversal from its consolidation phase, Hindalco is into a gradual up move and is into a rising channel pattern. The texture of the chart pattern suggests upward movement from the current level is very likely to continue in the coming sessions.
BPCL
BUY | CMP: Rs 372.5 | Target: Rs 390 | SL: Rs 365
BPCL has presented a robust rally, after a breather of few trading sessions, it has taken a pause in the momentum. Currently, the counter is trading near the lower boundary of the range, which indicates reversal from current levels for bullish continuation.
(Shrikant Chouhan, Head of Equity Research – Retail, Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)