Buy Rites, Gujarat Alkalies for up to 16% rally, recommends HDFC Securities

On the broader market outlook, Vinay Rajani the technical & derivative analyst of HDFC Securities suggests to keep a stop at 19,635 on all long positions in the Nifty.

Nifty View

The Nifty broke three session's losing streak, by closing with the gain of 80 points. Nifty has been forming higher tops and higher bottoms on the daily chart, which indicates bullish trend. The recent swing low was registered at 19,635 and same should be kept as a stoploss in trading long positions of Nifty.

BUY

Rites Ltd

Last close: Rs 503.60

Target: Rs 585

Stop-loss: Rs 457

The stock price has been finding support near its 20-day EMA for last many sessions. The stock price has broken out from downward sloping trend line on the daily chart. Price breakout is accompanied with jump in volumes. 

 

The stock price is placed 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 daily charts.

BUY

Gujarat Alkalies

Last close: Rs 791

Target: Rs 850

Stop-loss: Rs 720

The stock price has broken out from descending triangle on the daily chart. Price breakout is accompanied with jump in volumes. The stock price is placed above its 20, 50 and 200 DMA, indicating bullish trend on all time frame. 

The stock has been forming higher tops and higher bottoms on the weekly charts. Indicators and Oscillators like MACD and RSI have turned bullish on the weekly charts.

(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal).