 "Bulls and bears")
The domestic market has been on a downward spiral since the last 10 sessions, with the BSE Sensex missing 68,000 and Nifty 50 skipping 20,000-mark. Both the indices have broken short-term support of the 21-simple moving average (SMA), reflecting mild selling pressure.
However, a few selective stocks still continue to display spirited trend, envisaging to reach higher grounds. So far this year, shares of IDFC First Bank have skyrocket 48 per cent, while Bajaj Auto, NTPC, and Dr. Reddy's Laboratories have surged close to 35 per cent, respectively, displaying extreme bullishness on charts.
Here’s the technical outlook for stocks that appear strong for accumulation during current scenario:-
IDFC First Bank Ltd (IDFCFIRSTB)
Likely target: Rs 100
Upside potential: 15%
The breakout of the upward resistance line triggered a next upside in the stock, as per the daily chart. The short-to-medium term outlook continues to eye Rs 100, holding the support of Rs 82 and Rs 80 levels. Technically, accumulation may emerge close to Rs 85, which was the horizontal hurdle of the recent rally. CLICK HERE FOR THE CHART
Bajaj Auto Ltd (BAJAJ-AUTO)
Likely target: Rs 5,500
Upside potential: 12%
Despite the counter facing selling pressure at 4,900-level, which it is attempting to breakout since early July this year; the underlying breakout over Rs 4,700 appears to hold the major trend, its 50-SMA. A break through above Rs 4,700 shall see this counter heading towards Rs 5,500, as per the daily chart. CLICK HERE FOR THE CHART
Dr. Reddy's Laboratories Limited (DRREDDY)
Likely target: Rs 6,250
Upside potential: 11%
Post absorbing all the selling pressure in the range of Rs 5,500 to Rs 5,300 levels, the stock has managed to battle impending sell-off. Immediate supports exist at Rs 5,300 to Rs 5,400 levels, with price action denoting a bullish move towards Rs 6,250. Once can expect more addition in volume once the stock surpasses Rs 5,700 on a closing basis. CLICK HERE FOR THE CHART
Hindalco Industries Ltd (Hindalco)
Likely target: Rs 500
Upside potential: 10%
The “Ascending Triangle” breakout did see mild dips during the current turndown, but the underlying trend continues to hold the upward bias intact. Unless a breach of Rs 433, its 200-day simple moving average (SMA), is achieved, the bullish bias persists to see higher levels in the coming sessions. The positive formation implies that Rs 500 is the immediate reach. CLICK HERE FOR THE CHART
NTPC Ltd (NTPC)
Likely target: Rs 250
Upside potential: 11%
Lately, the stock has risen with a firm momentum, closing higher in eleven sessions consecutively. This move may take a breather, eventually taking control of the next up move. The support for the stock falls at Rs 210 and Rs 200, with the price objective emerging at Rs 250. CLICK HERE FOR THE CHART
