Nifty view and stock call by Vinay Rajani, HDFC Securities: Buy L&T, ONGC

L&T is on the verge of breaking out from the symmetrical triangle pattern on the daily charts.

Nifty heading towards 11300 Target

Nifty has risen for the fourth session on the trot. The index has reached well above its 200-day simple moving average (SMA), placed at 10,865. Now, 200-day moving average (DMA) can act as a support for trading long positions. The Upward sloping trendline adjoining bottoms of Oct 2018(10,004), Aug 2019(10,637), and Sep 2019(10,670) projects the strong resistance around 11,300 in Nifty.

BUY L&T (Rs 939): | Target: Rs 1,000 | Stop loss: Rs 900

The stock price is on the verge of breaking out from the symmetrical triangle pattern on the daily charts. It remained in the narrow range for the last four weeks. The counter has been moving up slowly with rising volumes for the last four sessions.

BUY ONGC (Rs 82.5): | Target: Rs 90 | Stop loss: Rs 79

The stock price has broken out from a downward sloping trend line on the daily chart with a jump in volumes. On week ended July 17, 2020, the stock price formed a bullish “Hammer” candlestick pattern on the weekly charts.

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Disclaimer: Vinay Rajani is Technical Analyst at HDFC Securities. Views are personal.