Buy Reliance Industries, ONGC, Infosys stocks, charts show bullish trend; Nifty’s support at 17000

Buy Reliance Industries, ONGC, Infosys stocks, charts show bullish trend; Nifty’s support at 17000

By Shrikant Chouhan

On Tuesday, due to weak global cues and uncertain geo political issues, the benchmark indices opened with a gap down. But one more time the index took the support near the 200 day SMA and registered an intraday pullback rally. From the day’s lowest levels, the Nifty 50/ BSE Sensex recovered over 235/900 points. Among sectors, almost all the major sectoral indices witnessed selling pressure but Media and Reality corrected sharply, both down over 2.75 percent.

Technical stocks to buy

ONGCBUY, CMP: Rs 164.95, TARGET: Rs 175, SL: Rs 160

After the vertical rally from the lows of 130 to 170, the counter got stuck in a range for the last few weeks. Currently, it is trading in an inverse head and shoulder chart pattern which hints at a fresh breakout move from current levels.

InfosysBUY, CMP: Rs 1,734.35, TARGET: Rs 1,820, SL: Rs 1,699

For the past few weeks, the counter has been trading in a symmetrical triangle chart pattern along with decent volume activity. Furthermore, on the daily scale, a rebound is seen from its important support levels which suggest that the counter has enough potential for upside in the coming horizon.

Hindalco IndustriesBUY, CMP: Rs 516.2, TARGET: Rs 543, SL: Rs 505

Post decline a strong reversal is seen from its important retracement zone. Moreover, the formation of a bullish Marubozu candlestick pattern with incremental volume activity suggests a strong up move in the counter.

Reliance Industries Ltd (RIL)BUY, CMP: Rs 2,389, TARGET: Rs 2,510, SL: Rs 2,340

The stock is trading in a range-bound movement with a higher low series on the daily and intraday charts. Therefore, upward movement from the current level is very likely to remain in the near term.

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