Bank Nifty likely to outperform Nifty in the coming days, says Nilesh Jain

BUY BANK NIFTY | TARGET: 24,800 | STOP LOSS: 23,800

The Bank Nifty index outperformed in the previous trading session and formed a bullish candle on the daily chart. It has surpassed its previous double top pattern at 24,200 levels which hints of a fresh momentum on the higher side. A fresh put writing at 24,000 strike indicates that put writers are shifting the base higher and we might see further upside move on the back of a short-covering rally in the coming days. The momentum indicators and oscillators are also very much in the buy mode on the daily as well weekly scale. So, based on the above rationale we can expect the Bank Nifty index to outperform compared to Nifty.

BUY PIDILITIND | TARGET: Rs 1,630 | STOP LOSS: Rs 1,500

The stock has provided a breakout from a symmetrical triangle pattern on the daily chart. It is trading well above its short-term and long-term moving averages. The momentum indicator RSI has also provided a breakout from the falling trend line and MACD has provided a buy crossover on the daily as well as a weekly scale which hints at a short to medium-term positive momentum in the counter. A fresh put writing was seen at 1500 strike which will act as immediate support.

BUY MUTHOOTFIN | TARGET: Rs 1,300 | STOP LOSS: Rs 1,160

The stock has provided breakout from a flag and poll pattern on the weekly scale and the conservative target of this pattern is coming around 1280-1300. It is also on the verge of a breakout from a head and shoulder pattern on the daily chart where the neckline is placed at 1200 levels. The stock is also taking the support of its short term 21-DMA and trading well above its long term 200-DMA. The momentum indicator RSI is making a higher top and higher bottom and MACD is very much in the buy mode on the daily chart.

BUY HCLTECH | TARGET: Rs 890 | STOP LOSS: Rs 820

The stock after hitting all-time highs undergoes through some corrections which were mainly on the back of profit bookings. Now, it has found the support of its short term 21-DMA and formed a bullish Harami candlestick pattern on the daily chart. This pattern is considered as a bullish reversal, hence a strong pullback is expected. 

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.