Nifty charts suggest upward bias likely in the near-term, says Vinay Rajani

Among individual stocks, the technical & derivative analyst from HDFC Securities recommends to buy Poonawala Fincorp and ICICI Bank

Nifty View

On Tuesday, February 14, the NSE Nifty snapped two-day losing streak, driven by positive global cues and soft wholesale price inflation (WPI) numbers in India.

At close, Nifty was up 0.89 per cent or 158.9 points at 17,929.9. However, volumes on the NSE continued to be subdued and broader indices rose less than the Nifty despite lower advance decline ratio at 0.52:1.

While Nifty has closed at the highest level since January 24, it has formed a bullish ascending triangle type of pattern in the process. It could now stay between 17,824-18,027 band for the near term, with an upward bias.

BUY
Poonawala Fincorp
Last close: 313
Target: 325 
Stop loss: 304

Stock price has broken out from the consolidation which held for 7 weeks. The price breakout is accompanied by a jump in volumes. Since the stock is trading above its 50, 100 and 200 days EMA, it indicates bullish trend on an all-time frame. 

BUY
ICICI Bank
Last close: 865
Target: 885
Stop loss: 852

The stock price has broken out from bullish “Flag” pattern on the daily chart. In the week ended Feb 3, 2023, the stock formed bullish “Piercing Line” candlestick pattern on the weekly charts. Indicators and oscillators like MACD and RSI have turned bullish on daily time frame. 

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