Charts exhibit bullish trend for Mastek, Metro Brands: HDFC Securities

According to the technical analyst, Mastek resumed its uptrend after running correction from recent swing high, whereas shares of Metro Brands broke out from multi-week consolidation

Nifty view

On Tuesday, Nifty rose with an upgap, but closed forming a small body spinning top. Spinning tops are a sign of indecision at higher levels. One must be watchful of the low of the Nifty for the day (18,102) being protected, failing which a correction may ensue. Around 18,265 levels could be the next resistance for the Nifty, while 18,065-18,089 band could provide support in the near term.

Stock picks:

Buy Mastek
Last close: 1,761
Target: 2,000
Stop-loss: 1,600

On the week ended April 21, 2023, the stock price broke out from consolidation with a significant jump in volumes. On May 2, 2023, the stock resumed its uptrend after running correction from recent swing high. The stock is placed above its 2,050 and 100 days EMA. Indicators and oscillators like MACD and RSI have turned bullish on its weekly charts. The IT sector has started its outperformance after long time
 

 

Buy Metro Brands
Last close: 890
Target: 950
Stop-loss: 850

The stock price has broken out from multi-week consolidation. The price breakout is accompanied with rising volumes. The stock, too, is placed above all important moving averages, which indicates a bullish trend on all time frames. Indicators and oscillators have also turned bullish on the daily charts.

Disclaimer: Vinay Rajani is a senior technical and derivative research analyst at HDFC Securities. Views expressed are personal.