Nifty can test higher levels if it holds 11,400: Nilesh Jain of Anand Rathi

BUY NIFTY | TARGET: 11,650 | STOP LOSS: 11,400

The Nifty index is stuck in a broader range and, as expected, we saw buying coming in from lower levels. Now, the immediate support is placed at 11,400 levels and as long as Nifty trades above that, we can again expect Nifty to test the higher levels. The momentum indicators and oscillators on the weekly scale are very well in 'buy' mode. Hence, aggressive traders can initiate a long position with a stop loss of 11,400 levels for upside move towards 11,650 levels. The broader markets have outperformed and are also looking good on the chart. Hence, a defensive trader should adopt stock-specific actions.

BUY GNFC | TARGET: Rs 232 | STOP LOSS: 206

The stock has provided a breakout from a symmetrical triangle pattern on the daily chart. It has respected its short term 21-DMA which is currently placed at 209 levels. The conservative targets of the said pattern comes around 235 levels which is also its previous swing high.  The momentum indicator RSI has also provided a breakout from its downward sloping trend line and a 'buy' crossover can also be seen on MACD. 

BUY GODREJCP | TARGET: Rs 760 | STOP LOSS: Rs 680

The stock has breached its multi-month downward sloping trend line on the daily chart. The stock is also trading well above its short-term and long-term moving averages. The momentum indicator has reversed from the overbought territory which hints of further positive momentum in the counter.

BUY SONATASOFT | TARGET: Rs 360 | STOP LOSS: Rs 318

The stock is in a secular uptrend and also provided a fresh breakout on the daily chart. It is trading well above its short term and long-term moving averages. The momentum indicators and oscillators are very well in the buy mode on daily as well as weekly scales which hints of a further positive momentum in the counter. It has also surpassed its 21-DMA which is placed at 318 levels which will now act as immediate support.
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.