Technical calls from HDFC Securities: Buy Axis Bank, Infosys

Nifty outlook and top trading ideas by Vinay Rajani - Technical Analyst, HDFC Securities.

Nifty View

Trend of the Nifty is still bullish. In the last two months, the index faced resistance around 10,985 and reversed the trend towards south. So, it is important for it to surpass the crucial resistance of 10,985 on closing basis. On the downside 10,800 is a strong support, which should be kept as a stop loss in long positions.

Buy AXIS BANK (Rs 730) 

Target: Rs 760

Stop loss: Rs 710

The stock has given Symmetrical Triangle breakout on the daily charts and Higher tops and higher bottoms on the daily and weekly charts. Volumes are improving along with the price rise. The stock price has been trading above its 20, 50, 100 and 200-day moving averages (DMA). Oscillators and Indicators setup is bullish. Private banking sector is likely to outperform.

Considering the technical evidences discussed above, we recommend buying the stock between Rs 730 and Rs 720 for the target of Rs 760, keeping stop loss at Rs 710 on closing basis.

Buy INFOSYS (Rs 755)

Target: Rs 790

Stop loss: Rs 730

The stock recently registered its new all-time high of Rs 762.50. Higher tops and higher bottoms on the daily and weekly charts are well intact. It is trading above all important moving averages. It has also broken out from bullish “Flag” pattern on the daily charts.

Considering the technical evidences mentioned above, we recommend buying the stock between Rs 755 and Rs 740 for the target of Rs 790, keeping stop loss at Rs 730 on closing basis.

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