Mangalore Chemical, Kaveri Seeds are the top trading ideas of Vinay Rajani

The technical analyst from HDFC Securities expects the Nifty to find support in the range of 17,703 to 17,791.

Market View

The NSE Nifty has been finding resistance on the downward sloping trend line, adjoining the previous swing highs on the weekly charts. Trend-line resistance is placed somewhere in the range of 18,100-18,150. However, positional trend of the market is bullish, and therefore dips should be utilized to initiate fresh longs. Support for the Nifty is seen in the gap area, formed on April 04, 2022 between 17,703 and 17,791, where traders can go long for the upside target of 18,200, keeping a stop loss at 17,400.  

Mangalore Chemical and Fertiliser: BUY

Target: Rs 102

Stop Loss: Rs 86

Last close: Rs 91.30

The stock has broken out from a descending triangle on the weekly chart and the price breakout has been accompanied by jump in volume. The stock has surpassed the crucial resistance of previous swing high at Rs 86.60. The weekly MACD has been rising and has reached above equilibrium line. The weekly RSI too has been rising with higher tops and higher bottoms. Chemical and fertilizer sector has been outperforming for the last couple of months. The stock is placed above all important moving averages, indicating bullish trend on all time frames.

Kaveri Seeds: BUY

Target: Rs 660

Stop Loss: Rs 580

Last Close: Rs 601.80

The downward sloping trend line breakout is seen on the weekly charts, and the price breakout has been accompanied by a jump in volume. The stock surpassed its previous top resistance of Rs 585 on the weekly chart and is now placed above all important moving average parameters. Indicators and oscillators like RSI, DMI and MACD have been showing strength in the current up move. The stock has started forming higher tops and higher bottoms on the weekly chart.

(Vinay Rajani, Technical Research Analyst, HDFC securities. Views expressed are personal).