Stocks to buy: Nifty may rally if it crosses 15,800; BPCL, Infosys shares look strong on charts

The AGM of the index big Reliance Industries Ltd (RIL) is scheduled for the twenty fourth of June that may maintain the merchants and market excited concerning the end result. Picture: Reuters

By Shrikant Chouhan

The Nifty 50 index is heading for the degrees of 16000/16200 within the subsequent few weeks and the draw back is protected to 15400 ranges. Additionally within the absence of help from the cyclical shares, defensives are providing important help to the market, which is grossly constructive for the market. The AGM of the index big Reliance Industries Ltd (RIL) is scheduled for the twenty fourth of June that may maintain the merchants and market excited concerning the end result. Additionally, few index heavyweights like ITC and Bharti Airtel delivered first rate numbers however haven’t participated within the present run-up of the market. If they begin taking part then it’s seemingly that may ship the market past 16000 ranges.

On Tuesday, the market remained in a decent buying and selling vary. It did not surpass the heaviest degree of 15800 but additionally survived above the extent of 15670, which was the day past’s lowest degree. Such a kind of formation brings main volatility to the market. The defensives like Know-how, Pharma and FMCG provided important help, nonetheless, finance-related shares closed within the damaging territory. On Wednesday, under the extent of 15670, Nifty would drop to 15620 or 15580 ranges. On the upper aspect, Nifty would rally if it manages to surpass 15800 ranges. Resistance can be 15800, 15880 and 15950 ranges. The main focus ought to be on Prescribed drugs and Know-how firms.

Technical shares to purchase

Aurobindo Pharma
BUY, CMP: Rs 972.1, TARGET: Rs 1,020, SL: Rs 950

On the every day chart, after hitting the all-time excessive of 1063 the inventory went right into a gradual downtrend, nonetheless, for the previous few days the inventory was hovering close to its 50 Days EMA and finally, it made a double backside chart sample and reversed from the help zone for a brand new leg of upward motion.

HDFC Life Insurance coverage Firm
BUY, CMP: Rs 689.7, TARGET: Rs 725, SL: Rs 675

For the previous few weeks the inventory was into an accumulation section the place it was buying and selling in a rectangle formation, in consequence, a superb demand zone is created round 660-670 space which is able to act as an sturdy base for the counter. Not too long ago the inventory has given a powerful breakout of the vary with incremental quantity exercise signaling for a bullish up transfer within the close to time period.

Bharat Petroleum Corporation Ltd (BPCL)
BUY, CMP: Rs 487.45, TARGET: Rs 510, SL: Rs 475

The inventory is repeatedly buying and selling in an ascending channel formation which clearly suggests bullish momentum is more likely to stay within the brief time period. As well as, on the every day charts, the inventory has shaped a better backside formation with a powerful bullish candlestick sample indicating good energy within the counter.

Infosys
BUY, CMP: Rs 1,412.95, TARGET: Rs 1,490, SL: Rs 1,380

After the sturdy uptrend rally from 1300 to 1390, the inventory witnessed a slim vary exercise for few periods and has shaped a Cup and Deal with chart sample with the rising quantity and finally the inventory broke out of the vary for transferring additional upside forming bullish continuation sample.

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