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Hot Stocks | Can bet on Mahanagar Gas, HUL, HDFC Life Insurance Company for short term

For the benchmark index Nifty, Call writers hold maximum open interest at 16,000 strike which should act as a major hurdle in the upcoming sessions.

June 16, 2021 / 07:19 AM IST
 
 
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Nifty surged to its all-time high once again and continued its winning streak for the fourth consecutive session on June 15 tracking optimism in global markets despite rising inflation concerns.

Nifty ended at 15,869 as FMCG counter boosted sentiment. From the banking space, ICICI Bank and Axis Bank also contributed to gains in Bank Nifty.

On the derivative front, Call writers hold maximum open interest at 16,000 strike which should act as a major hurdle and a key psychological level for the Nifty in the upcoming sessions.

On the downside, 15,800 would be major support as Put writers were seen adding hefty open interest there.

Close

On the technical front, Bank Nifty looks promising from hereon along with FMCG counters.

Bank Nifty has an immediate hurdle at 35,500 above which follow-up buying can be seen which could move the index towards 36,000 as well.

Here are three buy calls for the next 2-3 weeks:

Mahanagar Gas | LTP: Rs 1,267.45 | Target price: Rs 1,430 | Stop loss: Rs 1,150 | Upside: 13%

Since February, this stock has been trading in a broader range of Rs 1,060-1,260 along with multiple supports on the downside at its medium and long-term moving averages.

At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and given a breakout above the neckline of the pattern formation.

Moreover, the bullish flag breakout can also be observed on the short-term charts.

The rising volumes along with rising prices suggest strength in the current breakout which could move the stock much higher from the current levels.

Traders can accumulate the stock in the range of Rs 1,250-1,265.

Hindustan Unilever | LTP: Rs 2,393.90 | Target price: Rs 2,600 | Stop loss: Rs 2,250 | Upside: 9%

This stock has managed to take support at its 100-day exponential moving average multiple times, trading in a range of Rs 2,320-2380.

At the current juncture, this stock has given a breakout above the symmetrical triangle pattern after a triple bottom formation on broader charts.

Positive divergences on secondary oscillators along with rising prices suggest the strength in the current trend.

Prices are holding well above their short and long-term moving averages. Traders can accumulate the stock in the range of Rs 2,375-2,395.

HDFC Life Insurance Company | LTP: Rs 693.85 | Target price: Rs 750 | Stop loss: Rs 650 | Upside: 8%

Since March, this stock has been trading in a downward sloping channel as prices took a deep cut from Rs 746 to Rs 660.

However, in the recent past, it has managed to take support at its 200-day exponential moving average on the daily timeframe and bounced back sharply once again to regain the momentum above its falling trendline of sloping channel.

At the current juncture, the stock has formed a rounding bottom pattern on the daily interval with breakout seen above the key resistance level of Rs 690.

On the technical front, the stock is also maintaining its higher bottom formation. Traders can accumulate the stock in the range of Rs 685-695.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Shitij Gandhi is a senior technical analyst at SMC Global Securities
first published: Jun 16, 2021 07:19 am

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