By Shrikant Chouhan
The market has formed a continuation formation followed by the formation of the Harami pattern which it has formed on Monday. It is bullish for the market. Also, the Nifty/Sensex closed between the bearish gap, which it had left between 15065-14919 / 50250-50991 last Friday. The market breadth was also encouraging as along with IT and FMCG we saw bullish activity in financials. Based on the daily chart the Nifty/Sensex is heading for the minimum target of 15065/50750. On the other side, 14830/50100 and 14750/49800 would be major supports. The focus should be on Technology and FMCG stocks.
Four technical stock picks are:-
BUY, CMP: Rs 1,602.15, TARGET: Rs 1,680, SL: Rs 1,570
Colgate-Palmolive India Ltd stock has given a breakout of a downward sloping trend line and closed comfortably above its 50 day SMA with a strong bullish candlestick pattern indicating a further up move in the near term.
BUY, CMP: Rs 1,304.5, TARGET: Rs 1,370, SL: Rs 1,275
After the double bottom chart pattern, Infosys Ltd stock reversed with an inverted hammer candlestick formation and currently it has given a trend line breakout with incremental volume activity on the daily chart.
Housing Development Finance Corporation (HDFC Ltd)
BUY, CMP: Rs 2,564, TARGET: Rs 2,690, SL: Rs 2,510
Post short term correction, currently Housing Development Finance Corporation Ltd (HDFC) stock is trading near its important retracement level and the texture of the chart suggests a fresh uptrend.
Tata Steel Ltd
BUY, CMP: Rs 735.5, TARGET: Rs 770, SL: Rs 720
Tata Steel Ltd stock has formed bullish continuation formation along with modest volume activity indicating further uptrend from current levels.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)