Stocks to Buy: In the last two trading days, the Sensex and Nifty have fallen by 1.50 percent. Bank Nifty and Nifty Metal indices have lost up to 3.5 per cent in just two days. Due to the boom in the US bond market, FIIs are continuously selling in the market and on Monday they have pulled 2 thousand crore rupees from the market. Investors are preferring Treasury bonds with tenor ten years instead of equities. On Tuesday also there was a decline in the market.
Technically speaking, Sensex had closed above 52100 and Nifty 15600, but in the next few days Nifty could fall to 15450-15300 while Sensex could come up to the level of 51600-51000. Talking about the upside, the Sensex can reach the level of 52350-52500 and Nifty 15680-15750. Till the time Nifty does not cross the level of 15750 and Sensex 52500, strategy should be adopted to reduce weak long positions. However, some strong companies should be bought for large support.
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TCS: Target Price Rs 3360
The stock faced resistance at 3330-3380 levels in the last few days on account of transitory profit booking due to strong supply area. However, due to increase in volume, support at its retracement zone is showing signs of strength in its shares. You can buy this stock at a target price of Rs 3,360 by placing a stop loss of Rs 3140 at the current price of Rs 3205.8.
Godrej Industries: Rs 580
A head and shoulders chart pattern is forming in the chart of this stock over a large time frame. The stock is trading near the neckline support and is showing an upward trend soon. You can buy this stock at the current price of Rs 554.85 by placing a stop loss of Rs 540 at a target price of Rs 580.
Nestle India: Target Price – Rs 18750
There is a bullish trend in this stock and there was a significant decline on the weekly scale. The stock is trading close to its short term moving average, which gives a strong potential for the stock price to rise. You can buy this stock at the current price of Rs 17,856.1 by placing a stop loss of Rs 17,500 at the target price of Rs 17,500.
Bajaj Auto: Target Price – Rs 4100
After touching the record level of Rs 4200, there was a correction in Bajaj Auto. However, due to increase in volume activity near its support area, it has formed an inverted hammer candlestick pattern which is indicating a revival. You can buy this stock at the current price of Rs 3905.4 by placing a stop loss of Rs 3820 at the target price of Rs 4100.
(Article: Nagraj Shetty, Technical Research Analyst, HDFC Securities. These are the author’s own recommendations. Investing in capital markets is subject to risks. Consult an advisor before taking any investment decision.)