Here's why Vinay Rajani recommends buying Indoco Remedies, PTC India

The technical analyst from HDFC Securities said traders should wait for correction to enter fresh longs on the Nifty index.

Nifty ended in the green for the fifth consecutive session Tuesday to close at 17,345. The index has risen more than 2,200 points from the bottom of 15,183 registered in June 2022. RSI and MFI oscillator have reached the overbought territory on the daily chart.

Nifty has retraced 76.4 per cent of the entire fall seen from 18,114 to 15,183. Looking at the short term overbought scenario, traders should wait for correction to enter fresh longs. Close above 17,400 would resume the primary uptrend. Support for the Nifty is seen at 17,000 and 16,800. 

Stock calls

Buy Indoco Remedies: Rs 399-386 | Targets: Rs 425, Rs 440 | Stop-loss: Rs 380

By surpassing Rs 394 resistance, the stock has broken out from the consolidation pattern on the weekly charts. It has reached above its 200 days EMA. The stock has been forming higher tops and higher bottoms on the daily charts. 

Buy PTC India: Rs 84.45-82 | Targets: Rs. 92, Rs 96 | Stop-loss: Rs 80

The stock has surpassed the crucial double top resistance of Rs 84 on a closing basis. It has also broken out from downward sloping trend line with rising volumes on the weekly charts. Indicators and oscillators have turned bullish on its weekly charts.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).