Nifty view & stock recos by Anand Rathi: Buy Sonata Software, PNC Infra

Nifty is expected to bounce or retrace 50 per cent of the recent fall. Hence a bounce till 12,150 can't be ruled out.

NIFTY: BUY  | TGT: 12,150 | SL: 11,990

Nifty closed in the negative territory in the last trading session. It has, however, been forming a falling wedge pattern on the hourly charts which is a reversal pattern. The Index is expected to bounce or retrace 50 per cent of the recent fall. Hence a bounce till 12,150 can’t be ruled out.

SONATA SOFTWARE: BUY | TGT: Rs 360 | SL: Rs 328

The stock has been forming a symmetrical triangular pattern and it is expected to provide a breakout on the upside. The daily and weekly momentum indicators are well in the buy mode which will eventually help the stock to provide a breakout on the upside.

PNC INFRA: BUY | TGT: Rs 225 | SL: Rs 198

The stock has provided a breakout from the falling channel and the breakout has come with an increase in volumes and clear buy crossover in its momentum indicator, hence we recommend buying it for the target of 225 with a stop loss of 198.

LT TECHNOLOGY SERVICES: BUY | TGT: Rs 1,819 | SL: Rs 1,669

The stock has provided a breakout from a symmetrical triangular pattern that was formed in its wave ii of wave 5 and with this breakout wave iii of wave 5 up has started.

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Note: The author is a Assistant Vice President - Equity Research at Anand Rathi Shares and Stock Brokers and may have positions in one or all of the above stocks. Views expressed are personal.