Stocks to buy: A trading day earlier on August 31, the market reached a record high and the Sensex / Nifty touched the level of 17153.50/57982.47 for the first time. After a slow start on Tuesday, the market gradually gained momentum and once it crossed the psychological level of 17000/57200, it continued to gain momentum. Talking about the sectors, there was a buying trend in Consumption, Metal and IT, but selling pressure was also seen on the media and some auto stocks. Technically speaking, the bullish trend is visible in the market even further.
Traders will have to be careful at the resistance level of 17200/58200 despite the rally in the last three trading days. A bullish trend is visible in the medium term, so if there is any downside in the market at this time, then it should be seen as a buying opportunity. The market is getting support at 16980/57100 and it can go up to 17275/58450. However, if the market falls below 16980/57100, then it can slip to 16900/56800. Investors can earn better profits by investing in Tech Mahindra, Grasim Industries, Tata Chemicals and Bharat Forge.
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BUY, CMP: Rs 1,447.65, TARGET: Rs 1,520, SL: Rs 1,414
This stock is continuously moving forward and despite the decline in a few trading days, its prices are getting stronger. In the coming trading days, it is showing a trend to move above the current level.
BUY, CMP: Rs 1,500.4, TARGET: Rs 1,575, SL: Rs 1,470
Following the double bottom chart pattern, the stock is likely to witness a reverse trend due to increased volume activity on the daily chart. Apart from this, this stock has broken the sloping trend line, due to which there is a possibility of further upside in Grasim Industries.
BUY, CMP: Rs 767.2, TARGET: Rs 805, SL: Rs 750
The volume activity of this stock is increasing i.e. more shares are being bought and sold. Apart from this, the stock is above its short term moving average on the daily chart, due to which it is showing signs of a bullish trend.
BUY, CMP: Rs 844.65, TARGET: Rs 888, SL: Rs 825
The correction started after this stock reached a record high of Rs 890 but now it is showing an uptrend. On the chart, it is forming a rounding bottom with increasing volumes, due to which it is showing the possibility of a rise in the coming trading days.
(Article: Shrikant Chauhan, Executive Vice President, Technical Research, Kotak Securities)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)