Buy Infosys, HDFC Bank, NTPC stocks, charts show strength; fresh pullback rally in Nifty possible above 16300

Buy Infosys, HDFC Bank, NTPC stocks, charts show strength; fresh pullback rally in Nifty possible above 16300

By Shrikant Chouhan

The benchmark indices registered a volatile trading session, after a roller coaster momentum the Nifty 50 ended 62 points lower while BSE Sensex fell 105 points. Among sectors, the metal index lost the most, shedding over 5 per cent. Whereas some buying was seen in selective banking and FMCG stocks. Technically, after a muted opening the market witnessed intraday recovery but one more time it took the resistance near 16400/55000 and corrected sharply. In addition, on intraday charts, the index is still holding lower top formation, which is broadly negative for the market.

InfosysBUY, CMP: Rs 1,553, TARGET: Rs 1,630, SL: Rs 1,520

The stock has underperformed after hitting the double top formation and it has witnessed a downtrend. However, in recent past sessions, there is a pause in downward momentum. As a result, the counter is into an accumulation phase near its important demand zone. Therefore, the formation indicates the resumption of a bullish uptrend in the coming horizon.

Godrej PropertiesBUY, CMP: Rs 771.3, TARGET: Rs 810, SL: Rs 755

The stock had witnessed gradual price decline post its upward movement. However, reversal is seen from its important support zone on the daily charts. The formation indicates the stock is very likely to resume its new leg of the uptrend from the current levels.

HDFC BankBUY, CMP: Rs 1,341.05, TARGET: Rs 1,410, SL: Rs 1,310

After hitting the highs of 1700, the counter has seen a vertical slide on the downside and is into oversold territory. In addition, it has formed a double bottom chart formation near the support zone with decent volume activity, which indicates a trend reversal in the coming trading sessions.

NTPCBUY, CMP: Rs 155.45, TARGET: Rs 164, SL: Rs 151

The counter has shown an incredible rally in the recent past and despite weak market conditions, the stock is holding firm on higher levels. The structure is representing a bullish continuation chart pattern, which hints at an uptrend to persist in the near term.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)