Nifty awaits range breakout; Buy IRCTC, India Glycol: HDFC Securities

On the broader market outlook, Vinay Rajani the technical & derivative analyst says the breadth of the market is very strong as more than 83% of the NSE500 stocks are above their 200-DMAs.

Nifty View

The Nifty has been directionless for last three trading sessions by oscillating in the narrow range. The 50-days EMA placed at 19,288 is expected to act as a support for Nifty, while 20-DMA placed at 19,452 is expected to act as a resistance. 

Violation of the range 19,452-19,288 on the either side could bring momentum back to the Nifty.

However, Nifty Small cap and Midcap indices have managed to register fresh all-time on closing basis. Breadth of the market is very strong as more than 83 per cent of the NSE500 stocks are placed above their respective 200-DMA. 

BUY

IRCTC

Last close: Rs 672

Target: Rs 748

Stop-loss: Rs 629

The primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly charts. The stock price has been finding support on its 20-DEMA. 

The stock has recently shown throwback fall towards its previous top support. ADX Indicator has turned in to bullish trend. The stock is placed above all important moving averages, which indicates bullish trend on all time frames.

BUY

India Glycol

Last close: Rs 772

Target: Rs 850

Stop-loss: Rs 727.45

The downward sloping trend line breakout on the weekly chart. The price rise in accompanied by jump in volumes, which confirms the bullish trend.

The stock is placed above all important moving average, indicating bullish trend on all time frames. Indicators and oscillators like MACD and RSI have turned on weekly chart. The stock has recently surpassed its 200 days EMA resistance

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC  Securities. Views expressed are personal).