Buy Bata, ONGC, HDFC Life for near-term gains; Nifty support at 17150, charts signal more weakness By Shrikant Chouhan The benchmark indices corrected sharply, the Nifty ended 257 points lower while the BSE Sensex was down by 844 points. Among sectors, all the major sectoral indices were traded in the red, but the realty index lost the most, shedding over 3 per cent. Technically, after muted opening indices corrected sharply and breaches the important support level of 17150/57700. Post breakdown it intensified the weak momentum. Long bearish candle on daily charts and lower high formation on intraday charts indicating further weakness from the current levels. We are of the view that the texture of the market is weak and the correction wave is likely to continue till 16850-16800/56900-56700. On the flip side, 17050 in NSE Nifty, and 57350 in BSE Sensex would be key intraday resistance zones, above which, minor pullback rally possible till 17100-17125/57500-57600. Technical stocks to buy Bata India BUY, CMP: Rs 1,810.3, TARGET: Rs 1,900, SL: Rs 1,770 The counter had been in a downtrend in the past many sessions. However, at present there is a pause in its downward movement due to its strong multiple support levels. The stock has reversed its trend from the support zone along with incremental volume activity. Federal BankBUY, CMP: Rs 122.4, TARGET: Rs 130, SL: Rs 118 On the weekly scale, the counter 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. ONGCBUY, CMP: Rs 131.1, TARGET: Rs 138, SL: Rs 128 After the sharp up move, the stock is trading in a range-bound movement well above its short term moving averages. As a result, the formation of a Flag chart pattern on the daily scale is formed which points to bullish movement to resume in the coming horizon. HDFC LIFEBUY, CMP: Rs 522.55, TARGET: Rs 550, SL: Rs 510 The stock has underperformed in the past few weeks and it has witnessed a downtrend. After the sharp correction from higher levels, the stock is currently trading in a range bound mode near its demand zone, which indicates accumulation at these lower levels. Therefore, upward movement from the current level is expected to resume in the coming sessions. Also read: UPI, RuPay, BHIM to go global says FM Sitharaman, India in talks with these nations (Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own.)
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)