Nifty may resume downtrend if it breaks below 11,350: HDFC Securities

Strong support seen at 11,358 in Nifty

After sharp fall of more than 2.6 per cent on August 31, Nifty registered a nice pullback of almost 1 per cent on September 1. Nifty also managed to hold above the low of 11,325 registered on August 31. 20 days EMA and SMA both are placed at 11,358 odd levels and the same is expected to act as a support in the short term. Nifty would resume its downtrend once we see sustainable level below 11,358. The recent high of 11,794 would continue to act as strong resistance for the Nifty.

BUY Torrent Pharma (2,723) | Target: Rs 2,890 | Stop-loss: Rs 2,620

The stock has found support at the previous top level of 2,650 on the daily chart. Primary trend of the Pharma sector is bullish. The stock has resumed its uptrend after witnessing healthy correction in the last 15 days. Recent correction in the stock can be considered as a buying opportunity for investors.  The stock price has reversed north after finding support on its 50 days EMA.

BUY Abbott India (16,460) | Target: Rs 17,600 | Stop-loss: Rs 15,900

The stock price has formed bullish triple bottom formation at 16,000 odd levels. Indicators and Oscillators have turned bullish on the short term charts. The stock price is placed above all important moving averages, indicating bullish trend on all time frames.

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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.