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Titan, ONGC among top technical stocks to buy, charts show strength; Nifty support at 16850

The dismissal of 16600/55800 in Nifty and Sensex could possibly trigger one more correction wave till 16500-16350/55500-55300.

Nifty, Sensex, Titan, NMDC, stocks to buy
For the traders now, 16600/55800 would be the immediate support level to watch out

By Shrikant Chouhan

The benchmark indices recovered sharply from the day’s lowest levels in the previous trading session. The Nifty 50 index ended 120 points higher while the BSE Sensex gained 350 points. Among sectors, metal stocks outperformed as a result metal index rallied over 4 per cent whereas Bank Nifty and Auto indices remained under pressure. Earlier this week, the market opened with a gap down but after the initial sell-off, the index took the support near 16400 and reversed sharply. Technically, the Nifty/ Sensex formed a long bullish candle which was broadly positive. Currently, the market is hovering between 16500-16750/55000-56200 range. In the last hour of trade on Monday, NSE Nifty and Sensex cleared the resistance of 16750/56200 but it would be interesting to see whether the indices hold the level of 16750/56200 or not. For the traders now, 16600/55800 would be the immediate support level to watch out. Above which, the index could continue the momentum till 16850-16950/56500-56800. However, the dismissal of 16600/55800 could possibly trigger one more correction wave till 16500-16350/55500-55300.

Titan Company
BUY, CMP: Rs 2,556, TARGET: Rs 2,680, SL: Rs 2,500

For the past few sessions, the stock was in range-bound with a higher low series formation. Meanwhile, on the daily scale, it has given a strong breakout of the Ascending Triangle chart pattern. The incremental volume activity indicates the beginning of a new up move in the counter.

Tata Consumer Products
BUY, CMP: Rs 716, TARGET: Rs 750, SL: Rs 700

On the weekly scale, the stock is seen consolidating near its demand zone. Moreover, on the daily chart, the counter has reversed from its double bottom support. Therefore upward movement from the current level is very likely to continue in the near term.

NMDC
BUY, CMP: Rs 143.1, TARGET: Rs 150, SL: Rs 140

The stock has given a breakout of the sloping channel pattern on the daily chart. Hence the bullish activity post breakout hints for an up move to continue in the coming sessions.

ONGC
BUY, CMP: Rs 160.4, TARGET: Rs 169, SL: Rs 156

Post correction of the last few sessions the stock has formed a Dragonfly Doji candlestick formation near its support zone. Moreover, closing above its short-term moving average should result in a bullish trend for the stock in the near term.

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

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