 "Nifty struggling to cross 20-DEMA; UCO Bank, Lemon Tree top technical picks")
Nifty View
Nifty has been failing to surpass the resistance of 20 day-EMA (DEMA) for the last seven trading sessions. At present, 20 DEMA is placed at 19,700 odd levels. Sustainable level above 19,700 could result in a bullish trend reversal in Nifty. Below 19,475, Nifty could slide down to next support of 19,230.
Buy UCO Bank | Last close: Rs 44.55 | Target: Rs 47 | Stop-loss: Rs 42.75
The stock price has broken out from symmetrical triangle on the daily charts. Price breakout is accompanied with jump in volumes. The stock is trading above its 20, 50 and 200 DMA, indicating bullish trend on all time frame. Indicators and Oscillators like MACD and RSI have turned bullish on the weekly charts.
Buy Lemon Tree | Last close: Rs 118: | Target: Rs 125 | Stop-loss: Rs 110.9
The stock has broken out from a downward sloping trend line on the daily charts. Primary trend of the stock is bullish as it has been forming higher tops and higher bottoms on the weekly charts. It is placed above all important moving averages. Indicators and oscillators have turned bullish on the weekly chart.
Disclaimer: Vinay Rajani is a Senior Technical and Derivative Research Analyst at HDFC Securities. Views expressed are his own. He does not have any holding in the stocks given above.