Stock Tips: Domestic equity benchmark Nifty 50 had reached a new high of 17436 for the eighth consecutive trading day on Tuesday, 7 September. However, Nifty/Sensex faced selling pressure at the resistance level of 17450/58550. Intra-day trading activity is very sluggish and the market is trading up and down in the range of 150/500 points. Globally also the market is not getting much encouraging support. Talking about the sectors, after a spectacular rally, there is now selling pressure on realty and IT stocks. However, there is a buying trend in some financial and FMCG stocks.
The market is currently very sluggish and the bulls are avoiding taking long positions around 17450. Although technically speaking, there is a possibility of short term correction in the market only when it comes below 17290/58000. In the next few trading days, the level of 17290/58000 will decide the trend of the market. If the market remains above this, then it can reach the level of 17450-17500/58550-58700. However, if slip below this level, the market can roll down to 17250-17210/57700-57500. Talking about stocks, a breakout pattern is forming in some stocks including HDFC, ICICI Bank and investors can earn up to 6 percent profit by investing in it.
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Housing Development Finance Corporation (HDFC)
BUY, CMP: Rs 2,837, TARGET: Rs 2,980, SL: Rs 2,780
The stock was passing through a consolidation phase after a spectacular rally on the daily time frame. After this it has now broken the flag chard pattern. Volume activity has increased, which is showing signs of a rise in this stock in the coming trading days.
BUY, CMP: Rs 211.75, TARGET: Rs 225, SL: Rs 205
This stock is showing a gradual uptrend and higher highs and higher lows are being formed. An inverted head and shoulders chart pattern has been formed on the daily chart indicating the possibility of a strong breakout move in the near term.
BUY, CMP: Rs 716.9, TARGET: Rs 755, SL: Rs 700
Talking on the monthly scale, there was a strong rise in this stock. Although it has been slippery in the last few trading days, but at present the investment opportunities for the short term are looking very attractive.
BUY, CMP: Rs 695.85, TARGET: Rs 730, SL: Rs 680
This stock has seen great growth in the long time frame. However, since the last one month, there is a correction in its price. However, it is likely to increase in the coming trading days.
(Article: Shrikant Chauhan, Executive Vice President, Kotak Securities)
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