By Shrikant Chouhan
The market place has formed a continuation formation followed by the formation of the Harami pattern which it has formed on Monday. It is bullish for the market place. Also, the Nifty/Sensex closed amongst the bearish gap, which it had left amongst 15065-14919 / 50250-50991 final Friday. The market place breadth was also encouraging as along with IT and FMCG we saw bullish activity in financials. Based on the everyday chart the Nifty/Sensex is heading for the minimum target of 15065/50750. On the other side, 14830/50100 and 14750/49800 would be significant supports. The concentrate must be on Technology and FMCG stocks.
Four technical stock picks are:-
Colgate-Palmolive India Ltd
Invest in, CMP: Rs 1,602.15, TARGET: Rs 1,680, SL: Rs 1,570
Colgate-Palmolive India Ltd stock has offered a breakout of a downward sloping trend line and closed comfortably above its 50 day SMA with a sturdy bullish candlestick pattern indicating a additional up move in the close to term.
Infosys
Invest in, CMP: Rs 1,304.5, TARGET: Rs 1,370, SL: Rs 1,275
After the double bottom chart pattern, Infosys Ltd stock reversed with an inverted hammer candlestick formation and presently it has offered a trend line breakout with incremental volume activity on the everyday chart.
Housing Development Finance Corporation (HDFC Ltd)
Invest in, CMP: Rs 2,564, TARGET: Rs 2,690, SL: Rs 2,510
Post brief term correction, presently Housing Development Finance Corporation Ltd (HDFC) stock is trading close to its significant retracement level and the texture of the chart suggests a fresh uptrend.
Tata Steel Ltd
Invest in, CMP: Rs 735.5, TARGET: Rs 770, SL: Rs 720
Tata Steel Ltd stock has formed bullish continuation formation along with modest volume activity indicating additional uptrend from existing levels.
(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s personal.)