Nifty view & stock calls by Anand Rathi: Buy Infosys, ICICI Prudential Life

The stock of Infosys is making a higher top and higher bottom pattern on the daily chart and reclaimed its long term moving average of 200-DMA which is placed at 708 levels

BUY NIFTY | TARGET: 10,350 | STOP LOSS: 10,040

The NIFTY index continued its positive momentum and also reclaimed its 100-DEMA which is currently placed at 10,042 levels. If we take the Fibonacci retracement of the entire recent fall from the top, then the 61.8 per cent retracement which is also called the golden ratio, is coming around 10,400 levels which will now act as immediate resistance. Now, as long as Nifty trades above 10,040 levels we can expect the last leg of a pullback towards 10,400-10500 zone. Thus, to play this pullback we advise aggressive traders to initiate a long position with a strict stop loss of 10040 and defensive traders should refrain from creating any aggressive long bets in the index from here on and adopt a stock-specific approach.

BUY INFY | TARGET: Rs 760 | STOP LOSS: Rs 695

The stock is making a higher top and higher bottom pattern on the daily chart and reclaimed its long term moving average of 200-DMA which is placed at 708 levels. The stock has also provided breakout from its 3-month consolidation. The momentum oscillator MACD has also provided fresh buy crossover on a weekly scale which hints of positive momentum to continue in the short term.

BUY ICICIPRULI | TARGET: Rs 425 | STOP LOSS: Rs 380

The stock breached its major neckline on the higher side with higher than average volumes. It is also trading well above its short term moving averages, where 21-DMA is currently placed at 375 levels. The momentum indicator and oscillator are very well in the buy mode on the daily as well as weekly scale.

SELL M&M | TARGET: Rs 430 | STOP LOSS: Rs 495

The stock witnessed “V” shape recovery from the lower levels and also it has produced a 100% gain within 3-months. It is currently facing the major hurdle of its 200-DMA which is placed at 494 levels. The momentum indicator RSI has reached oversold territory near 66 levels and showing signs of reversal which hints that current rally is likely to exhaust and we may see some profit booking at higher levels.

=========================================
Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are his own.