Buy ICICI Bank, PNB, recommends Vinay Rajani of HDFC Securities

The technical analyst expects the NSE Nifty to face resistance around 17,773, while suggests to hold longs on the Nifty with a stop at 17,200.

From the recent bottom of 16,836, the NSE Nifty has risen almost 800 points towards 17,622. At 17,600, the Nifty completed the 50 per cent retracement of the entire downswing seen from 18,351 to 16,836. The next resistance for Nifty is seen at 17,773, which happens to be 61.8 per cetn retracement of the downswing. Support for the Nifty has shifted at 17,200 and that can be kept as a stoploss in trading long positions.

Buy ICICI Bank
Reco Price: Rs 811.45
Target: Rs 850
Stop Loss: Rs 770

ICICI Bank has broken out from the bullish Flag pattern on the daily charts, and the price breakout is accompanied by rising volumes. Primary trend of the stock has been bullish with higher tops and higher bottoms. The stock is placed above all important moving averages, which indicates bullish trend on all time frames. Banking as a sector has been outperforming for a while and technical setup of the Bank index is much stronger than the Nifty. The stock is developing “flag” kind of pattern on the daily chart. CLICK HERE FOR THE CHART

Buy PNB
Reco Price: Rs 41.20
Target: Rs 45.80
Stop-loss Rs 38

Punjab National Bank (PNB) has seen an inverted Head and shoulder pattern breakout on the daily chart. The stock price has broken out from the downward sloping trend line on the daily chart. Price breakout is accompanied with rise in volumes. Indicators and oscillators have turned bullish on the daily and weekly charts. The PSU Bank Index has started outperforming the Nifty and Bank Nifty. The stock surpassed the 20, 50, 100 and 200 days EMA resistances and sustaining above it. The primary trend of the stock has been bullish with higher tops and higher bottoms. CLICK HERE FOR THE CHART

Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal.