Nifty headed for upside target of 16,000: Vinay Rajani of HDFC Securities

Nifty outlook
 

Nifty has been in the continuation of an uptrend and has been registering new all-time high on a daily basis. The index has been finding support on its 5-day EMA, which is currently placed at 15,680-odd levels. Momentum indicators are in favour of bulls and we expect Nifty to continue this upward journey even beyond 16,000.

Stock recommendations

Buy ONGC (Rs 125) | Target: Rs 135 | Stop-loss: Rs 120

Rationale: The stock price has formed rounding bottom formation on the daily charts. Volumes have gone up, along with the price. PSU and Oil-Gas sector have been outperforming and the same is expected to continue for a while. In the week gone by, the stock surpassed the crucial double top resistance placed at 120 odd levels. Moreover, indicators are showing strength in the ongoing uptrend.

Buy Cipla (Rs 954): | Target: Rs 1,010 | Stop-loss: Rs 920
 

The stock closed very near to its all-time high, on Tuesday. Its primary trend has been bullish. On June 8, the stock closed on a strong wicket. Nifty Pharma index has broken out from the consolidation which was there for the last five weeks. Moreover, the stock is placed above all important moving averages parameters, indicating bullish trend on all time frames.
Disclaimer: Vinay Rajani is a Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal