Technical calls by HDFC Securities: Buy Godrej, RBL Bank

Nifty outlook and top trading ideas by Vinay Rajani - Technical Analyst, HDFC Securities:

Buy Godrej Ind (648.65)

Target: Rs 715

Stop loss: Rs 580

The stock price has broken out from the downward sloping channel on the weekly chart. It is placed above all the important moving average parameters, indicating a bullish trend.

Higher Tops and Higher bottoms formation on the weekly charts which is a bullish sign. The stock price has been taking support on its 50-week exponential moving average (EMA).

Oscillators and indicators like RSI, ADX, and MACD have been trading bullish on the short-term charts. Considering the technical evidence discussed above. We recommend buying the stock at CMP for the target of Rs 715, keeping a stop loss at Rs 580 on a closing basis.

Buy RBL Bank (573)

Target: Rs 615

Stop loss: Rs 554

Stock price broke out from bullish inverse head and shoulder pattern on the week ended 15th June 2018. Stock price has been forming higher tops and higher bottom formation on the daily and weekly charts. Short term moving averages are trading above long term moving average, indicating positional uptrend.  We recommend buying RBL Bank for the upside target of 615, keeping SL at 554.

Nifty View

Nifty is in a continuation of its uptrend and yesterday was the 7th session on the trot, when advances decline ratio remained positive, phenomenon, which the markets have not seen earlier in 2018. On the upside immediate resistance for Nifty is seen at 11395 followed by 11500. As far as support is concerned 11200 has become strong base for the short term.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.