Radico, Ashoka Buildcon: Top technical bets by Vinay Rajani of HDFC Sec

It was yet another subdued session for the Indian benchmark indices. Nifty fell marginally by 26 points or 0.11 per cent, to close at 23,727. During the session, Nifty attempted to surpass previous session’s high of 23,869 but failed to do so. Index found resistance at its 5 DEMA and turned southward post 10:45 AM Nifty remained well within the previous session’s move. On the monthly expiry day, Bank Nifty index consolidated in the narrow range of 51,382-51,137 throughout the session. 

 

The positional trend of the Nifty is still bearish and immediate resistance is seen at 23,870. Support for the Index is seen at 23,537. Above 23,870, Nifty could extend the rise towards 24,100.

 

Buy Radico Khaitan (Rs 2,520) | Target: Rs 2,690 | Stop-loss: Rs 2400

 

Radico Khaitan stock has been forming higher tops and higher bottoms on the daily chart. Stock price has been rising with the rise in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on the daily charts

 

Buy Ashoka Buildcon (Rs 282.80) | Target: Rs 298 | Stop-loss: Rs 274

 

The primary trend of the stock has bullish with higher tops and higher bottoms on the weekly charts. Stock has witnessed a running correction and seems to have reached short term support level. Stock has been holding above key moving averages. Price rise was accompanied by rise in volumes, while price correction has been with low volumes .

 

(Disclaimer: Vinay Rajani, CMT is  a senior technical and derivative analyst, HDFC securities)