No sign of bearish trend reversal in short term for Nifty: HDFC Securities

Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC Securities.
 
Nifty Outlook:
 
Hold Nifty Longs with 10,200 Stoploss
Upside Target 10,540

 
Positional setup of Nifty is still bullish with higher tops and higher bottoms. Nifty has surpassed the previous top resistance of 10,251 and registered new all-time high at 10,384 recently. There is no sign of bearish trend reversal seen as of yet on the short term charts of Nifty. We maintain our bullish view in Nifty with the earlier anticipated target at 10,540 and it is also advisable to protect Nifty longs with 10,200 stop loss.

 
Buy GNA AXLES
CMP: Rs 380
Stop Loss: Rs 365
Target: Rs 415
 
Stock price has broken out from bullish “Flag” pattern on the daily chart, indicating continuation of primary uptrend. Volumes during breakout remained higher, which indicates the strength in the stock. Stock has completed its correction from 394 to 344, took support on its 20 days EMA and bounced back recently. Oscillators like Stochastic and ADX have turned bullish on the daily charts, indicating upward momentum in the counter. Short term moving averages have started surpassing long term moving average, indicating bullish trend reversal. Considering the technical evidences discussed above we recommend buying the stock between 380 and 370, for the target of 415, keeping SL at 365.

 
Buy HUDCO
CMP: Rs 86
Stop Loss: Rs 83
Target: Rs 95
 
Stock price has broken out from downward sloping trend line on the daily chart, indicating trend reversal. Volumes during breakout remained higher, which indicates the strength in the Index. For last 3 sessions, stock price has been rising and the consolidation which held for last 1 month has come to an end. Oscillators like MACD and ADX have turned bullish on the daily charts, indicating upward momentum in the counter. Short term moving averages have started surpassing long term moving average, indicating bullish trend reversal. Considering the evidences discussed above, we recommend buying the stock between 86 and 84, for the target of 95, keeping SL at 83.