Vinay Rajani of HDFC Securities suggests buying these stocks on October 09

After falling for almost 1600 points from the all time high of 26,277, Nifty turned north and closed on a strong wicket. Nifty has formed bullish “Harami” candlestick pattern on the daily chart. Nifty has retraced 23.6 per cent of the entire fall seen from its all time high. Nifty has also closed near its 50 DMA(25,045).

Above 25,070, Next resistance comes in at 25,299, which happens to be 38.2 per cent retracement of the downswing. Bullish formation will be negated if support of 25,755 is breached.

Buy Coforge (Rs 7,340) | Target: Rs 7,580 | Stop-loss: Rs 7,150

Stock is trading at its all time high. Stock has remained resilient in the falling market. Stock is holding strongest technical setup as compared to other IT stocks. Stock is placed above all important moving averages. Stock has been forming higher tops and higher bottoms on the daily and weekly charts.

 

Buy Glenmark Pharma (Rs 1,737) | Target: Rs 1,790 | Stop-loss: Rs 1.690

Stock has broken out from the consolidation pattern which held for last four weeks. Stock price has reclaimed its level above its 20 days EMA. Stock is trading above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on daily and weekly chart. Pharma sectorseems to have resumed its uptrend after small consolidation. 

(Disclaimer: Vinay Rajani, CMT is a senior technical and derivative analyst at HDFC securities. Views expressed are his own.)