Apr 16, 2024
Nifty above 16150 would aim for 16450 as market texture bullish; Buy HCL Tech, PVR, charts show strength
By Shrikant Chouhan
On Tuesday, the benchmark indices witnessed a sharp pullback rally, after a promising intraday rally, the NSE Nifty 50 index ended 438 points higher while the BSE Sensex was up by 1,344 points. Among sectors, all the major sectoral indices ended in the green but metal index outperformed, rallying over over 6 per cent. Technically, after a positive opening the Nifty/ Sensex successfully cleared 16000/53500 breakout level and post breakout, it intensified the positive momentum throughout the day. In addition, on daily charts, it has formed a long bullish candle, which is broadly positive for the short term. We are of the view that the short term market texture is bullish but mildly overbought.
Technical stocks to buy
Bajaj FinanceBUY, CMP: Rs 5,837.3, TARGET: Rs 6,150, SL: Rs 5,700
For the past few weeks, the counter witnessed a vertical slide on the downside. However, post correction a strong rebound is seen from the important support zone. The formation of marubozu candlestick hints at bullish momentum to sustain in the coming horizon.
PVRBUY, CMP: Rs 1,772.7, TARGET: Rs 1,880, SL: Rs 1,730
The stock is trading into a range bound mode, and presently the counter is near the breakout line of the triangle chart pattern. Hence, the recent price action indicates a strong breakout in a few trading sessions.
Apollo TyresBUY, CMP: Rs 214.9, TARGET: Rs 227, SL: Rs 208
The stock is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggests that the counter is likely to maintain bullish continuation formation in the near term.
HCL TechBUY, CMP: Rs 1,082.9, TARGET: Rs 1,140, SL: Rs 1,060
The stock has underperformed in the past few weeks and it has witnessed a downtrend. However, in recent past sessions it entered into an accumulation phase near its important support area. Finally, a strong reversal candlestick formation indicates the resumption of a bullish uptrend in the coming horizon
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Views expressed are the author’s own.)
More Details