Nifty is headed towards 11,800, says Vinay Rajani of HDFC Securities

Nifty is headed for the upside target of 11,800
 

From the bottom of 10,790 registered on September 24, 2020, Nifty saw a sharp recovery towards 11,680. The index has registered a rise of almost 900 points from the recent bottom in the span of just 7 trading sessions. Nifty has surpassed the previous top resistance of 11,618 on the daily chart. Support for the Nifty is shifted up to 11,400, which should be kept as a stop loss in long positions. The upside target for Nifty is seen at 11,800 odd levels. 

BUY CEAT LTD (1019.65) | Target: Rs 1,120 | Stop loss: Rs 970 

The stock has broken out from multiple downward sloping trend-lines on the weekly charts. Volumes have been rising along with the price rise for last 6 weeks. The stock price has surpassed the previous top resistance of Rs 976. Bullish rounding bottom formation is seen on the weekly charts, indicating continuation of an uptrend. It has been finding support on its 20 weeks EMA for last couple of months. Trend Breakout is registered by RSI on the weekly charts, indicating fresh up move. Weekly MACD is trading above its signal and equilibrium line

BUY JSW STEEL (291.50) | Target: Rs 312 | Stop loss: Rs 278

The stock price is on the verge of giving breakout from the consolidation which held for last 6 week between 292 and 268. It is trading above all important moving averages indicating uptrend on all time frames. Indicators and oscillators have turned bullish on weekly and monthly charts. Metal sector has resumed its primary uptrend. 

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Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.