Technical recommendations by HDFC Securities: Buy Kansai Nerolac, Escorts

Technical calls from Vinay Rajani, Technical & Derivatives Analyst, HDFC securities.

Nifty heading for 11496 and 11622 Targets

Nifty has broken out from the downward sloping trend line, adjoining 23rd Sep and 1st Oct 2019 highs. The index is now placed above its 20, 50, 100 and 200 DMAs, indicating a bullish trend. On the upside, we see targets of 11,496 and 11,622 in Nifty. Longs should be protected with the stop loss of 11,200.

Stock recommendation:

BUY KANSAI NEROLAC (Rs 519)

Target: Rs 560

Stop-loss: Rs 500
 

Stock is trading above all important moving average parameters. Stock price has been forming higher tops and higher bottoms on the daily and weekly charts. In the Quarter ending Sep 2019, the stock broke out from the long term price consolidation.
Considering the technical evidences, we recommend buying the stock between CMP and Rs 510 for the target of Rs 560, keeping stop loss at Rs 500 on closing basis.

BUY ESCORTS (Rs 630)

Target: Rs. 660

Stop-loss: Rs 610 
 

Stock price has broken out from the symmetrical triangle on the daily charts. It has taken out the resistance of its 200 DMA with higher volumes. Moving average and Oscillator setup on daily and weekly charts, too, has been bullish for a couple of weeks.

Considering the technical evidences, we recommend buying the stock at CMP and average it at Rs 618, for the target of Rs 660, keeping a stop loss at rs 610 on closing basis.

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Disclaimer: Views expressed are the author's own. He may have positions in one or more stocks.