If Nifty trades above 15,870, it may rally up to 16,150; ICICI Bank, SBI Life among 4 technical stocks to buy

Technically, within the close to future, 15870/ 52900 ought to be the important thing ranges to be careful for, under the identical correction wave more likely to proceed. Picture: Reuters

By Shrikant Chouhan

The present week begin was constructive, submit hole up opening Nifty 50/BSE Sensex shortly surpassed the 15750/ 52600 resistance mark and rallied over 190/ 400 factors. Within the each day timeframe, the index has fashioned a powerful reversal formation and the feel of the sample suggests an uptrend wave more likely to proceed within the medium time period. Nevertheless, the market is persistently taking resistance close to the 15900/53200 degree and the intraday chart suggests, merchants might take a warning stance close to the 15900/53200 degree.

Technically, within the close to future, 15870/ 52900 ought to be the important thing ranges to be careful for, under the identical correction wave more likely to proceed as much as 15775-15720/ 52850-52500. On the flip aspect, if the market succeeds to commerce above 15870 /52900, we are able to count on the continuation of the uptrend wave until 15925-15965/ 53200-53400. Additional upside may additionally proceed which may carry the index as much as 16050-16150/ 53500-53750. Sector-specific, the Financial institution Nifty and selective monetary shares more likely to outperform.

ICICI Bank
BUY, CMP: Rs 650.3, TARGET: Rs 685, SL: Rs 635

Publish sturdy rally from 530 to 660, the inventory had witnessed a gradual down transfer nonetheless the counter is buying and selling in a spread with respectable quantity exercise and always taking help on the rising pattern line which means that the inventory is into the buildup stage therefore recent breakout transfer is predicted for a brand new leg of uptrend within the close to time period.

Jindal Metal & Energy
BUY, CMP: Rs 391, TARGET: Rs 414, SL: Rs 380

After hitting the excessive of 500 the counter witnessed a pointy value correction and it entered into consolidation mode for the previous couple of classes nonetheless at the moment on intraday charts, it’s buying and selling in a decent vary of the Symmetrical triangle chart sample which signifies that the counter has sufficient potential for upside with favorable threat and reward state of affairs from the present ranges.

SBI Life Insurance Company
BUY, CMP: Rs 1,023, TARGET: Rs 1,075, SL: Rs 1,001

An exceptional up transfer within the counter is seen for the final many months and nonetheless it’s within the bullish pattern, the inventory is repeatedly creating the Greater Excessive and Greater low sequence chart sample, moreover latest sturdy bullish candlestick formation signifies upward momentum to maintain in coming classes.

Solar Prescribed drugs
BUY, CMP: Rs 673.25, TARGET: Rs 707, SL: Rs 660

For the previous few weeks, the inventory is broadly buying and selling in a 660 to 680 rectangular vary formation close to its essential retracement zone therefore a powerful base has been formed for the brand new leg of an uptrend for the counter, nonetheless, evidently a powerful up transfer may be very doubtless from the retracement space on the each day chart for additional bullish motion.

(Shrikant Chouhan is Govt Vice President, Fairness Technical Analysis at Kotak Securities. Views expressed are the creator’s personal.)