Sell Nifty for the target of 9,800: Nilesh Jain of Anand Rathi

One should refrain from creating any aggressive long position in Nifty at higher levels

SELL NIFTY | TARGET: 9,800 | STOP LOSS: 10,180

The NIFTY index broke its winning streak of six consecutive sessions and formed a doji candlestick pattern on the daily chart which indicates indecisiveness amongst participants. Now, we would like to reiterate our cautious stance on the markets and one should refrain from creating any aggressive long position at higher levels. We advise aggressive traders to initiate a short position with a strict stop loss of 10,180.

BUY BHARTIARTL | TARGET: Rs 620 | STOP LOSS: Rs 560

The stock is making a higher top and higher bottom pattern on the daily chart. Although, it witnessed some correction after posting all-time highs where the stock has taken the support of its short term 21-DMA which is placed at 550. On the daily chart, the stock has formed a bullish engulfing candlestick pattern which hints at a trend reversal. Based on the above rationale, we believe the momentum is likely to continue towards 620 which is the immediate target.

BUY DIVISLAB | TARGET: Rs 2,500 | STOP LOSS: Rs 2,370

The stock had earlier provided breakout from a symmetrical triangle pattern on the daily chart and post that we have seen some throwback where it has retested its breakout levels and again resumed its uptrend. It is also trading well above its short term as well as the long term moving averages. The momentum oscillator MACD has provided fresh buy crossover on the daily chart which provides hint that some positive momentum should continue. 

BUY MINDTREE | TARGET: Rs 1,000 | TGT: Rs 895

The stock has provided breakout from one-month consolidation and formed a big bullish candle on the weekly scale. The stock is showing a reversal in the trend and it has also reclaimed its short term 21-DMA which is placed at 892. The volume activity also supported the price action. The momentum indicator and oscillators are very well in the buy mode.
Disclaimer: Nilesh Jain isTechnical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or more stocks. Views are his own.