Nifty outlook & stock calls by Anand Rathi: Buy Nestle, Muthoot Finance

Momentum oscillator MACD has provided a fresh buy crossover on Nestle's daily chart

BUY NIFTY | TARGET: 10,900 | STOP LOSS: 10,580

The Nifty index is in a consolidation mode where it is taking the support of its 100-DEMA at around 10,600 levels. The momentum indicators and oscillators are very well in the buy mode on the hourly scale which hints that bulls are making a comeback and the current pullback is likely to extend further. The volatility index, IndiaVIX, is hovering near 25 levels which is giving comfort to the bulls. Thus, aggressive traders can initiate a long position with the strict stop loss of 10,580.

BUY NESTLEIND | TARGET: Rs 18,300 | STOP LOSS: Rs 16,900

The stock has provided breakout from a descending triangle formation on the daily chart with higher than average volumes. It is also taking constant support of its 21-day and 50-day short term moving average and also trading well above its long-term moving averages. The momentum oscillator MACD has also provided fresh buy crossover on the daily chart which hints of positive momentum to continue in the short term.

BUY MUTHOOTFIN | TARGET: Rs 1,200 | STOP LOSS: Rs 1,080

The stock has formed a strong base at around 1,080 levels and provided a major breakout from its downward sloping trend line. The volumes were higher than average, which supported the price action. It is also taking the support of its 21-DMA which is also placed near 1,100 levels. The MACD has provided fresh buy crossover on the daily chart. The momentum indicator RSI is also breached its falling trend line, which hints that the current rally is likely to continue further.

SELL APOLLOTYRE | TARGET: Rs 104 | STOP LOSS: Rs 114

The stock has provided a breakdown from a rising wedge pattern on the daily chart and also making a lower top and lower bottom formations. It also broke its crucial support of its 21-DMA which is placed at 112. The MACD has provided a sell crossover on the daily chart which hints of further weakness in the counter.
Disclaimer: Nilesh Jain is Technical and Derivatives Research Analyst at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.