Stock recommendation from Anand Rathi's Nilesh Jain: Sell Mindtree, IGL

Nifty outlook and stock recommendations from Nilesh Jain, Technical and Derivatives Research - Equity Research, Anand Rathi Shares and Stock Brokers

NIFTY OUTLOOK

Nifty closed with a deep cut in the previous trading session and also broke its psychological support of 10,000. Although the momentum indicator RSI has reached the oversold territory of 13 levels on the daily chart, which hints of a small pullback, the major trend continues to remain negative. If we see any pullback then that should be utilized as a selling opportunity. The sentiment indicator “INDIAVIX” surged 64 per cent so far in this week and ended at a 10-year high of 42 levels, which is a major concern for the bull and it has to cool down below 25 levels to give comfort to the bulls.

Recommendations
 

MINDTREE: SELL | TGT: Rs 765 | SL: Rs 820

The stock has made a big bearish candle on the daily chart. Also, the momentum indicator MACD has provided a sell crossover on daily as well as hourly chart. The stock is also making lower top lower bottom formation on the daily chart which hints of further weakness in coming sessions.

GODREJPROP: BUY | TGT: Rs Rs 900 | SL: Rs 820

The stock has formed a bullish engulfing pattern on the hourly chart and also a hammer candlestick pattern on the daily chart which indicates a reversal in the current trend. The momentum indicator RSI has also reversed from oversold territory.

IGL: SELL | TGT: Rs 372 | SL: Rs 397

The stock is making a lower top and lower bottom formation on the daily chart and it has also provided breakdown from its horizontal support zone which was placed at 397. The momentum indicator MACD is also well in the sell mode on the daily as well as weekly charts.

Disclaimer: The author may have positions in one or all of the above stocks. Views expressed are personal.