RSI indicator hints at positive momentum in Nifty; stay long: Nilesh Jain

BUY NIFTY IN THE RANGE 9,240-9,260 | TARGET: 9,450 | STOP LOSS: 9,100

Nifty is making a higher top and higher bottom formation on the daily chart and is also taking the support of its rising trend line. The momentum indicator RSI is also moving higher and is, currently, at 51 levels which hints of some positive momentum to continue. The volatility India (VIX) has fallen below 40 levels, which is giving comforts to the bulls. Based on the above rationale, we advise remaining on the long side as long as Nifty is respecting its rising trend line.

BUY ADANI PORTS | TARGET: Rs 295 | STOP LOSS: Rs 268

The stock has provided a breakout from a one-month consolidation and is making a higher top and higher bottom on the daily chart which indicates positive momentum to continue in the short term. The momentum oscillator MACD is very well in buy mode on daily as well as weekly scale.

BUY BATA INDIA | TARGET: Rs 1,320 | STOP LOSS: Rs 1,240

The stock has given a breakout from a descending triangle pattern on the daily chart. The volume was higher than average has also supported the breakout. The momentum indicator and oscillator are in buy mode.

BUY INFOSYS | TARGET: Rs 705/720 | STOP LOSS: Rs 660

The stock has provided a breakout from the symmetrical triangle pattern on the daily chart and made a big bullish candle. The target of this pattern is coming around 720 levels. The momentum indicators and oscillators have also provided buy crossover on the daily chart.

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Disclaimer: Nilesh Jain is Technical and Derivatives analyst - Equity Research at Anand Rathi Shares and Stock Brokers. He may ave positions in one or all of the above mentioned stocks. Views are his own.