See strong resistance for Nifty between 9,921-9,950 levels: HDFC Securities

Recommends buying GAIIL and Bajaj Auto

Nifty outlook and technical calls by Devarsh Vakil & Vinay Rajani - PCG Desk, HDFC securities:
 
Nifty Outlook
 
Last week, Nifty formed a double bottom around 9,685 on the daily charts and showed nice pullback thereafter.  In last three sessions, Nifty recouped 185 points from the bottom of 9,687. However, short term technical setup is not that convincing and it looks difficult for Nifty to sustain at higher levels. We see Strong resistance in the zone of 9,921-9,950 for Nifty. Aggressive longs should only be taken above 9,950 in Nifty. Any level below 9,685 would resume downtrend in Nifty and in that case Nifty could plunge towards next support of 9,450.

 

Buy Bajaj Auto
CMP: Rs 3,162
Stop Loss: Rs 3,050
Target: Rs 3,400
 
Stock price has broken out from the symmetrical triangle on the long term monthly charts. Short term moving averages have started surpassing long term moving averages. Stock has recently registered new all-time high with rise in volumes. Oscillators have been showing strength on short to medium term charts. Auto sector has been outperforming for last many months and it is expected to do well in the coming months also. Considering the technical evidences discussed above we recommend buying the stock between 3162 and 3100, for the target of 3400, keeping SL at 3050.

 
Buy GAIL
CMP: Rs 435.40
Stop Loss: Rs 415
Target: Rs 470
 
Stock has formed bullish rounding bottom formation on the weekly charts. Stock price has recently registered new all-time high with healthy volumes. Oil and Gas sector has started outperforming for last two weeks. Stock has been forming higher tops and higher bottoms on the weekly and daily charts. Oscillators have been showing strength on the short to medium term charts. Moving average setup is also indicating bullish momentum in the counter. Considering the evidences discussed above, we recommend buying the stock between 435.40 and 425, for the target of 470, keeping SL at 415.  

 
Disclaimer: The analysts may have positions in any or all the stocks mentioned above.