Great to soon reach 17890 if above 17700; Tech Mahindra, Motherson Sumy among the best stocks to buy

As long as the Nifty 50 and BSE Sensex are trading above 17700/59500, the chances of reaching 17850-17890 / 59800-60100 will become great.

By Shrikant Chouhan

The Bulls continued their positive momentum for the third day in a row, Excellent 50 The index ended 179 points higher, while Sensex rose 672 points. Among sectors, purchases were seen in energy and financial stocks, while some profit accounting was recorded in selective stocks of pharmaceuticals and metals. On Tuesday, Nifty and BSE Sensex opened with a positive note and successfully passed the important resistance marks 17700 and 59500. After the intraday breakout, both rose over 100 and 300 points, respectively. Technically, on the intraday charts, the index has formed a promising formation of continued breakthroughs, which is mostly positive. For day traders, support has now been shifted to 17700/59500 from 17550/59000. As long as the index trades above 17700/59500, the chances of reaching 17850-17890 / 59800-60100 would become great. However, below 17700/59500, the great possibility of quick intraday correction to 17625-17580 and 59350-59100 is not excluded.

Technical stocks for purchase

Tech Mahindra
BUY, CMP: Rs 1,789.8, GOAL: Rs 1,880, Rs: 1,755 Rs

After a sharp rise, the stock is trading in a range well above its short-term moving averages, as a result, a flag pattern is formed on the daily scale indicating continued bullish movement into the coming horizon.

Motherson Sumi Systems
BUY, CMP: 224.8 Rs, GOAL: 236 Rs, SL: 219 Rs

The stock is trading in the formation of the Rising Channel chart making the top and bottom, as a result, all major indicators of technical trends such as Macd and ADX are strong and stable. Therefore, the upward movement from the current level is very likely to continue in the next sessions.

Laurus Labs
BUY, CMP: Rs 519.05, GOAL: Rs 545, Rs SL: 505 Rs

After falling from a maximum of 550, the downward momentum took a break and the formation of lower end rounding charts can be seen on intraday charts suggesting a revival of the uptrend from current levels for further bullish movement.

Godrej Properties
BUY, CMP: 1,890.3 Rs, GOAL: 1,985 Rs, SL: 1,850 Rs

In the past few sessions, the stock was in the accumulation phase where it was traded in the shape of a rectangle, as a result, a zone of good demand was created around the 1850 area, which will serve as a support to the counter. Recently, the stock gave a breakthrough range signaling a bullish upward movement in the near future.

(Shrikant Chouhan, Head of Capital Research (Retail), Kotak Securities. The views expressed are the authors.)

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