Nifty's trend has shifted from consolidation to bullish: Vinay Rajani

On August 3rd 2021, Nifty broke out from the consolidation, which was there for last two months in the range of 15,500-15,950. Nifty surpassed the crucial resistance of 16,000, where huge Call writing was happening in derivative segment. Nifty has shifted its trend from the consolidation to bullish.
 

Immediate target for Nifty is seen at 16,300-16,400 range while support has shifted up to 15,950 in Nifty.

Stock picks:
 

Buy L&T (Rs 1,631) | Target: Rs 1,730 | Stop-loss: Rs 1,575

On the week ended July 3rd, 2021, the sttock broke out from the bullish inverted head and shoulder pattern on the weekly charts. Post the breakout, it entered in to consolidation phase for next two week. Now, the stock has taken out two week’s price range and has resumed its primary up trend. Nifty infra Sector has broken out on the chart and indicates the bullish trend for the entire sector.

Buy ICICI Bank (Rs 690) | Target: Rs 730 | Stop-loss: Rs 665

The stock has recently surpassed the crucial resistance of the previous swing high resistance of 677. It has broken out from the bullish cup and handle pattern on the daily chart with rising volumes. Primary trend of the stock has been bullish as short term moving averages are placed above medium to long term moving averages. Indicator and Oscillator setup has been showing strength in the current uptrend.

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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