Nifty short-term texture bullish, level based trading ideal for day traders; Hindalco, Canara Bank top bets

2023-07-27

By Shrikant Chouhan

After a strong uptrend rally in the previous, the benchmark indices BSE Sensex and Nifty 50 witnessed profit booking at higher levels. The Nifty ended 208 points while Sensex was down by 709 points. On Tuesday, despite tepid market conditions Nifty opened on a positive note but due to consistent profit booking at higher levels it corrected sharply. From the day’s highest level, the Nifty/Sensex shed over 265/940 points. Correction was seen among sectors like metals, oil and gas whereas some buying interest was seen in selective auto and consumption space.

Technical stocks to buy

Godrej Consumer ProductsBUY, CMP: Rs 723.5, TARGET: Rs 760, SL: Rs 705

Post correction from the higher levels the counter is trading in a range bound mode. The formation of a Hammer candlestick pattern near its demand zone along with rising volume suggests that the stock is getting bullish interest at the lower levels. Hence the formation hints at a fresh uptrend in the coming horizon.

VoltasBUY, CMP: Rs 1,210, TARGET: Rs 1,270, SL: Rs 1,185

The counter is into a gradual up move with a higher low series on the daily scale. Additionally, it has formed an inverse head and shoulder chart pattern on intraday charts. Therefore, sustaining above the breakout of the range indicates further upside in the near term.

Canara BankBUY, CMP: Rs 218.1, TARGET: Rs 230, SL: Rs 212

For the past few weeks the stock is into a range with a higher low series formation. Meanwhile, on the daily scale, it has formed an Ascending triangle chart pattern. The incremental volume activity indicates breakout and the beginning of a new up move in the counter.

HINDALCOBUY, CMP: 559.55, TARGET 590, SL 547

After a sharp upward rally, the stock witnessed some profit booking. However, at present it is trading near its important retracement zone which could act as a support for the stock. The formation indicates it is likely to resume a new leg of the uptrend from the current levels.

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

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