Nifty longs can be held with a stop at 17,200, recommends Vinay Rajani

The technical analyst from HDFC Securities expects CDSL and Polycab to perform well

After forming bearish Engulfing pattern on 13th December, the NSE Nifty saw some follow up selling and closed with minor losses on following day. The Nifty has been finding resistance at 50-day EMA, which is currently placed at 17,507 levels. Higher highs and higher lows are still intact on Nifty short term charts and therefore, Nifty can be held long with the stop-loss of 17,200, below which it would be advisable to cut longs and initiate fresh shorts.

CDSL

Buy: Rs 1,668

Target: Rs 1,825

Stop-loss: Rs 1,575

The stock has broken out from the bullish cup and handle pattern with higher volumes on the daily chart. The stock price has been finding support at its 50-day EMA. Indicators and oscillators have turned bullish on daily and weekly charts. The stock has been forming higher tops and higher bottoms on weekly harts. CLICK HERE FOR THE CHART

Polycab

Buy: Rs 2,559

Target: Rs 2,850

Stop-loss: Rs 2,405

The stock has closed at the all-time high levels by breaking out from the consolidation which held for last 3 months. The stock has been forming higher tops and higher bottoms on weekly and monthly charts. The stock price has been holding above all important moving averages. On 29th November, the stock formed double bottom pattern at Rs 2,150 odd levels and turned north. Indicators and oscillators like DMI and RSI have turned bullish on the monthly charts. CLICK HERE FOR THE CHART

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