Technical calls from HDFC Securities: Buy HCL Tech, SRF

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

Hold Nifty longs with 10,700 Stop loss; Resistances seen at 10,888 and 10,985

Nifty has been registering similar high for last two sessions around 10,888-odd levels. However, double- bottom reversal from 10,585 registered on February 19 is strong positional support for the Nifty. Traders should remain bullish on the index with a stop-loss of 10,700, where maximum Put writing took place in the last few sessions.

BUY HCL TECH (Rs 1,057)

Target Rs 1,190

Stop-loss Rs 1,026

The stock has given breakout from bullish “Flag” pattern in the daily charts, which indicates the continuation of a primary uptrend. It is few percentage away from making new all-time high above Rs 1,125. IT sector has been the biggest contributor in maintaining the strength of the Nifty. Moving average and Oscillator setup is bullish on daily and weekly charts.

Considering the technical evidences discussed above, we recommend buying the stock between CMP and Rs 1,045 for the target of Rs 1,190, keeping a stop loss of Rs 1,026 on closing basis.

BUY SRF (Rs 2,215)

Target Rs 2,445

Stop-loss Rs 2,155

The stock has given breakout from bullish “Flag” pattern on the daily charts, which indicates the continuation of a primary uptrend. The stock has been forming higher tops and higher bottoms on the daily charts. The stock has placed above all important moving average parameters. Indicators and oscillators have also turned bullish on the short to medium term charts. 

Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 2,180, for the target of Rs 2,445, keeping a stop loss at Rs 2,155 on closing basis.

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