Nifty bullish till it holds 9,700: Vinay Rajani of HDFC Securities

Nifty in Bullish Momentum; Targets: 10,160 and 10,550; Support: 9,700

Nifty has been rising for the last five consecutive sessions. On Tuesday, the index closed above the 50 per cent retracement level of the entire fall seen from 12,430 to 7,511. Next target for the Nifty is seen at 10,160 and 10,550. Nifty would be considered bullish till it holds the level above 9,700 in spot.

BUY MINDTREE (Rs 921) | Target: Rs 990 | Stop-loss: Rs 890

The primary trend of the stock is bullish as it is forming higher tops and higher bottoms on the daily charts. Short-term Moving averages are trading above medium-to-long term moving averages. The stock has surpassed crucial resistance of multiple tops placed at 920 odd levels. Downward sloping trend-line breakout is seen on the daily charts. Indicators and oscillators have been showing strength on the daily and weekly charts. Moreover, the overall IT sector has been outperforming and now Midcap IT stocks are showing traction on the upside.

BUY GAIL (Rs 96.85): | Target: Rs 104 | Stop-loss: Rs 93

The stock price has closed above the upper band of the Bollinger on the daily charts. It has also surpassed the resistance of the previous top on the short-term charts. Indicators and Oscillators have been showing strength on the short-to-medium term charts. Moreover, the Oil and Gas sector has been performing well since last week.
Disclaimer: Vinay Rajani is a Technical Research Analyst at HDFC Securities. Views are personal.