Trading calls by Nilesh Jain of Anand Rathi: Buy ICICI Bank, HDFC Life

HDFC Life stock has provided a breakout from a falling channel on the daily chart and the conservative target for the same is coming around Rs 680 levels

BUY ICICI BANK 

TARGET: Rs 530 

STOP LOSS: Rs 498

The stock is forming a higher top and higher bottom formation on the daily chart. It is also taking constant support of the centerline of the Bollinger band which is called the exponential moving average and is now heading towards the upper end of the band which is placed at Rs 530 levels. The momentum indicators and oscillators are in the buy mode on the weekly scales which hints at a further positive momentum in the counter. 

BUY HDFC LIFE 

TARGET: Rs 680 

STOP LOSS: Rs 645

The stock has provided a breakout from a falling channel on the daily chart and the conservative target for the same is coming around Rs 680 levels. The momentum indicator RSI has also reversed from its oversold territory which hints at further positive momentum in the counter. It is also trading well above its short-term and long-term moving averages. Based on the above rationale, we can expect a fresh momentum in the counter.

BUY LAL PATHLABS 

TARGET: Rs 2,420 

STOP LOSS: Rs 2,215

The stock has been in a consolidation mode over the past couple of months and formed a rectangle formation. It also reclaimed its short-term 50-DMA which was placed at Rs 2,215 levels which will now act as immediate support. The MACD indicators have provided a fresh buy crossover and RSI has also breached its falling trend line on the daily chart which hints at a strong pullback in the short term. Based on the above rationale, we can anticipate a breakout on the chart placed at Rs 2,330 and further momentum towards Rs 2,420 cannot be ruled out.

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