Nifty's short-term trend has turned bullish: Nandish Shah of HDFC Sec

Oscillators like RSI and MFI have broken out from the downward slopping trendline, indicating strength in Nifty's current rally

Nifty outlook

The short-term trend of the Nifty has turned bullish as it closed above its 5- and 20-day EMA. Nifty has broken out on the daily line chart on Tuesday where it closed at highest level since March 16, 2021. Oscillators like RSI and MFI have broken out from the downward slopping trendline, indicating strength in the current rally. Therefore, our advice is to remain bullish and accumulate long positions with the stop loss of 14,500 level. On the higher side, an immediate resistance is seen in the vicinity of 15,000-15,100 levels

Recommendations

BUY AJANTA PHARMA (Rs 1,863): | Target: Rs 2,050 | Stop-loss: Rs 1,755 | Potential return: 10%

The stock price has broken out on the daily line chart with higher volumes where it closed at three-year high. Oscillator like RSI is showing strength in the current uptrend of the stock. Plus, DI is placed above the Minus DI while ADX is placed above 20, Indicating momentum in the current uptrend. Pharma, as a sector, is looking good on the chart for the short-to-medium term. Therefore, we recommend buying Ajanta Pharma at CMP of Rs 1,863 for the target of 2,050, keeping a Stop Loss at 1,755

BUY GALAXY SURFACTANTS (Rs 2,446): | Target: Rs 2,750 | Stop-loss: Rs 2,300 | Potential return: 12%

The stock price has broken out on the daily line chart to close at all-time high levels. It is taking support at 20-day EMA since the last few days. Plus, DI is placed above the Minus DI while ADX is placed at 37, indicating momentum in the current uptrend. Volumes have been higher during the up days as compared to down days during the last few days, indicating accumulation in the stock. Therefore, we recommend buying Galaxy Surfactants at CMP of Rs 2,446 for the target of 2,750, keeping a Stop Loss at 2,300.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.