5 Nifty 500 stocks to accumulate if market breadth continues to improve

Shares of Power Grid Corporation of India, GAIL (India) , Linde India, Symphony and Tech Mahindra may rise up to 14%, as per their respective technical charts

Half of the Nifty 500 stocks are presently trading over their 200-day moving average (DMA), reflecting a move to regain the lost ground. Over the last couple of months, especially since mid-January this year, the broader market has been through choppy trades. 

Since mid-January, the BSE Sensex and Nifty 50 trades have fallen over 3 per cent, with every reversal experiencing added sell-off. 

The volatility has drastically increased, with majority of stocks pointing at non-directional trend. In recent times, India VIX has traded on extreme ends with no indication of settling down in coming sessions.  

However, when the market breadth strives to improve and reach an equilibrium point; technically stocks already possessing robust chart structures appear to be on safe bets, even if the market turns opposite.

Here are few selective stocks investors can look for accumulation in the current scenario:-

Power Grid Corporation of India Ltd (POWERGRID)

Likely target: Rs 250

Upside potential: 10%

Shares of Power Grid Corporation of India has broken out of the “Golden Cross” indicating an upward trend from a short-to-medium term perspective. Unless the counter falls beneath the support of Rs 215, the trend is expected to see higher levels. Immediate hurdle is placed at Rs 230 and once this mark gets overturned, the stock could reach a new all-time high recording Rs 250. CLICK HERE FOR THE CHART

GAIL (India) Limited (GAIL)

Likely target: Rs 125

Upside potential: 14%

After surpassing the major hurdle range of Rs 105 – Rs 103 range, the counter succeeded to take out the critical barrier of Rs 109 on Monday, with the technical oscillator, the Relative Strength Index (RSI), perceiving bullish bias in its overbought category. The trend is resilient and expects to see higher ground in the coming sessions. 

The chart structure denotes a move in the direction of Rs 125, inevitably hitting a new all-time high.  CLICK HERE FOR THE CHART

Linde India Ltd (LINDEINDIA)

Likely target: Rs 4,300 ( after crossing Rs 3,900)

Upside potential: 10%

A trendline breakout on the weekly chart of Linde India has triggered a positive rally that may reach a new peak in coming sessions. The breakout is supported by strong volumes, having cushion at Rs 3,500 levels. 

As per the daily chart, a move over Rs 3,900 level could spark a rally to Rs 4,300-mark. CLICK HERE FOR THE CHART

Symphony Limited (SYMPHONY)

Likely target: Rs 1,300

Upside potential: 9%

Three major parameters such as Price pattern, Technical indicator and moving averages, when confirms a particular trend, the probability of signals are much more effective, as in the case of Symphony shares. The “Higher High, Higher Low” pattern, supported by 100-day moving average (DMA) converging on 200-DMA reveals a robust trend. Also,   the counter is observing bullish bias in the overbought category of RSI. 

The Rs 1,100 remains as the support for a medium-term target of Rs 1,300 levels. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM)

Outlook: Golden Cross breakout may trigger sharp upside of over 10%

Shares of Tech Mahindra have a “Golden Cross” of the three moving averages, 50-DMA and 100-DMA converging on the 200-DMA, suggests a robust underlying momentum. This formation shall turn realistic when the counter crosses the recent high of Rs 1,152-mark. When that happens, the stock may embark a rally towards Rs 1,300 level. CLICK HERE FOR THE CHART