The Sensex (BSE SENSEX) and Nifty (NIFTY-50) have registered 30 per cent rally since the beginning of this year. Both the indices have risen 42 per cent since Diwali last year. For the market of technical chart experts, the new year (Vikram Samvat 2078) will also be very volatile but the market trend will continue to rise. Research and brokerage firm Kotak Securities has selected five stocks including Infosys, Indigo and Sun Pharma (Infosys, Indigo and Sun Pharmaceuticals). These are showing a strong rally in the technical chart. All of them are showing a rally of 35 per cent on the chart. The brokerage firm has suggested buying at least half the shares at their current levels.
Infosys
Buy 50% at current and the rest 50% at 1530. Target: Rs 1950-2050; Rally 20%
Key Support Levels: 1700-1660-1585-1500-1450
Key Resistance Levels: 1810-1915-1950-2050
After a strong uptrend rally between 1550 and 1570, the stock has consolidated between Rs 1650 and Rs 1750. It has formed a double bottom formation on the SMA near 50 days on the daily chart. The 50 days SMA for short term trade and 200 days SMA for medium term will be the deciding factor. Technically as long as it trades above this, the uptrend texture will continue above 1950. If this round continues, then this stock can go up to Rs 2050.
InterGlobe Aviation (IndiGo)
Buy 50% at Rs 2000 and rest 50% at 1800. Target: Rs 2300-2500, Rally: 23.7%
Key Support Levels: 1950-1800-1750-1700
Key Resistance Levels: 2150-2300-2375-2500
The stock has rallied up to Rs 2300 after a breakout formation at the range of 1860. But due to profit booking at higher level, it has seen technical sell-off. However, the medium term chart structure is still on the positive side.
Bharat Forge
Buy 50% at 760 and the rest 50% at 685. Target: Rs 875-930, Rally: 18.6%
Key Support Levels: 730-700-685-645
Key Resistance Levels: 800-850-875-930
For the past few months, this stock has been moving in the range of Rs 700 to Rs 800. It has formed a double bottom formation in the Daily and Weekly charts but after that it bounced back sharply. Its strong reversal formation from key support levels shows that the stock has the potential to move higher from its current levels.
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SUN Pharma
Buy 50% at 810 and the rest 50% at 730. Target: 930-975, Rally: 19.8%
Key Support Levels: 775-750-730-685
Key Resistance Levels: 850-890-930-975
After making a range breakout at Rs 700, the stock had strengthened between Rs 750 and Rs 800. Last month, this stock crossed the resistance of Rs 800 and closed above it, which is a very positive sign. After the breakout, the stock has formed a series of highs and lows which will support the next uptrend.
Canara Bank
Buy 50% at 201 and the rest 50% at 170. Target: 240-260, Rally: 34.4%
Key Support Levels: 190-183-170-160
Key Resistance Levels: 215-225-240-260
The stock continues to make breakouts on the Daily and Weekly charts. After the breakout formation, the stock took short term support at 170 and then reversed sharply. Apart from this, the formation of strong higher high and higher low series formation on the weekly chart indicates that the stock will move upwards from here. The texture of the chart suggests that this stock is likely to move higher and momentum will remain in it in the coming days.
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