Nifty pullback can extend till 14,700: Vinay Rajani of HDFC Securities

Nifty outlook

On April 13, 2021, Nifty formed inside bar or bullish “Harami” candlestick pattern on the daily chart, where the open and close remained within the range of the previous trading session .The implication of this pattern turns bullish when next session’s opening remains in green. On the upside, Nifty has got strong resistance in the zone of 14,652-14,785, which happens to be the unfilled gap formed on April 12, 2021. Longs should be protected with the stoploss of 14,275 in Nifty.

Recommendations

Buy HEROMOTOCORP (Rs 2,868): | Target: Rs 3,090 | Stop-loss: Rs 2,800

The stock has formed bullish “harami” candle stick pattern on the daily chart. Daily RSI has also exited from the oversold zone, which indicates the chances of sharp pullback in the counter. This week, the stock price formed bullish “double bottom” formation at 2,740 odd levels and reversed the trend toward north.

Buy SBIN (Rs 341): | Target: Rs 369 | Stop-loss: Rs 323

Stock has formed bullish “harami” candle stick pattern on the daily chart. Stock has witnessed healthy correction in the last one month. Long term trend of the stock has been bullish with breakout on the quarterly charts. Stock has taken support on 61.8 per cent retracement of the rally which was registered from 269 to 427(Jan 28, 2021 to Feb 18, 2021).
Disclaimer: Vinay Rajani is Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal