Kotak Securities’ stock recommendations for the day_1

By Shrikant Chouhan

The benchmark indices continued positive momentum for the second day in a row, the Nifty ended 119 points higher while the Sensex was up by 380 points. Among Sectors, Reality and Infra stocks witnessed buying interest whereas despite strong momentum profit booking were seen in PSU Banks stocks. Technically, after a long time the nifty surpassed the 20 day SMA (Simple Moving Average) and it is also holding  bullish continuation formation on daily and intraday charts which is largely positive.

We are of the view that, the short-term texture of the market is bullish but mildly overbought, hence, we could see a range bound activity in the near future. For the traders, buying on intraday corrections and sell on rallies would be the ideal strategy. For the bulls now, 19,750-19,700 would act as a crucial support zone while 19,850-19,900 could be the key resistance areas for the traders. However, below the 19,700 uptrend would be vulnerable. 

India launches its first reusable hybrid rocket ‘RHUMI-1’ for climate research Market rally leads to higher regulatory fees for stock exchanges The Curious Case of Higher Deposit Rates India will be our top market in 5-10 years, says Glenmorangie CEO MacRae

Also Read

Stocks to watch: TCS, Larsen & Toubro, Maruti Suzuki India, Glenmark Life Sciences

Stock Recommendations 

UltraTech Cement 

BUY | CMP: Rs 8,330 | TARGET: Rs 8,750 | SL: Rs 8,150

The stock witnessed short-term correction from the higher levels in the past few sessions. However, the downside seems to be restricted due to the multiple support zone. Recent reversal formation with rising volume activity indicate the stock is further gaining the bullish traction. Hence, we expect the upward movement from the current levels.

Also Read

Fiber cable quality standards in work for telcos, ISPs

HDFC Life Insurance Company 

BUY | CMP: Rs 621.50 | TARGET: Rs 650 | SL: Rs 610

After hitting the recent highs of around 690, the counter had seen a gradual slide on the downside and is into oversold territory. At present, there is a pause in its downward movement as the stock is available near to its demand zone, which could act as a strong base. Simultaneously making it a favorable candidate in terms of risk and reward for the traders.

Jindal Steel 

BUY | CMP: Rs 691.85 | TARGET: Rs 725 | SL: Rs 678

After a remarkable rally of the past few months, the stock went into a consolidation mode. At present, the structure is indicating at bullish continuation chart formation along with a decent volume activity. Hence, the formation indicates at bullish trend to resume from the current levels.

Tata Motors 

BUY | CMP: Rs 634.60 | TARGET: Rs 665 | SL: Rs 620

The counter is trading into a range bound mode for the last few sessions, and presently the counter is near the breakout line of the rectangle chart pattern. Therefore, the recent price action indicates a likely breakout for a new leg of up move in the coming trading sessions.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Related Posts