Nifty view & stock picks by Vinay Rajani of HDFC Sec: Buy STFC, JSW Steel

Nifty has been consolidating for the last four trading sessions. On Tuesday, while Nifty ended with minor gains, it managed to register all-time high close. Nifty50 has been finding support at its 8-day EMA, which is currently placed at 13,438. Longs should be held with the stop loss of 13,438 for Nifty. The positional target for Nifty is seen at 14,300-odd levels. 

Here are a few stock recommendations:

SHRIRAM TRANSPORT FINANCE | CMP: Rs 1090 

Target Price: Rs 1,170 

Stop loss Rs 1,050
 

The stock price has broken out from the pennant pattern on the daily chart. 'Pennantis' a continuation pattern, which indicates pause after a sharp rally. On December 15, the stock took out the crucial resistance of Rs 1,080 with healthy volumes. The stock is placed above all important moving averages.  
 

JSW STEEL | CMP: Rs 366 

Target: Rs 383

Stop loss: Rs 353
 

The metal sector has been outperforming for the last couple of months. JSW Steel has broken out from the bullish 'Flag' pattern on the daily chart. 'Flag' is a continuation pattern, which indicates a pause after a sharp rally. The stock took support on its 21-day EMA and bounced back sharply on December 15. Indicators and oscillator setup are bullish on the daily and weekly charts.

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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.