May 9, 2024
Nifty short-term term trend weak, fresh pullback rally possible above 17050; Buy SBI, Lupin, BPCL stocks
By Shrikant Chouhan
The benchmark indices corrected sharply, the Nifty 50 ended 215 points lower while the BSE Sensex was down by 703 points. On Tuesday, the market opened with a positive note but in the late afternoon it witnessed exceptional intraday sell-off. In the last two hours, the Nifty corrected over 390/1200 points. Among sectors, IT, FMCG, Reality lost the most, shed over 3 percent. Technically, on daily charts the index has formed a long bearish candle and after a long time it succeeded to close below the 200 day SMA which indicates further weakness from the current levels.
Technical stocks to buy
Cholamandalam Investment and Finance Company
BUY, CMP: Rs 736.85, TARGET: Rs 775, SL: Rs 720
The counter is trading in a rising channel constantly. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength. Therefore, upward movement from the current level is very likely to remain in the near term.
Lupin BUY, CMP: Rs 769.5, TARGET: Rs 810, SL: Rs 750
The stock is into a gradual up move with a higher low series on the daily scale. Additionally, it is trading in a rectangle formation near its short term moving averages. Hence, a strong base has been shaped for the new leg of an uptrend from current levels.
State Bank of India (SBI) BUY, CMP 511.8, TARGET 540, SL 500
The stock has shown a remarkable rally in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low chart formation is evident in the counter. Additionally, the rise in volume activity is indicating a bullish continuation pattern in the near future.
Bharat Petroleum Corporation BUY, CMP: Rs 375.85, TARGET: Rs 395, SL: Rs 365
The stock had presented a remarkable up move with the bullish continuation chart patterns continuously. After a breather of a few trading sessions, the counter has formed an inverted hammer which suggests that it is ready for further upward movement from the current levels.
(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)
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