Vinay Rajani recommends to hold longs on Nifty with a stop at 18,200

Among individual stocks, the technical & derivative analyst from HDFC Securities is bullish on NLC India and Mazagon Dock.

Nifty View

On December 20, 2022, the Nifty found support around its 50 days EMA and reversed north. An upward sloping trend line, adjoining the swing lows of September 20, 2022 (16,747) and October 13, 2022 (16,956) coincides with the 50 days EMA support.

The Nifty ended the session with a bullish “Hammer” candlestick pattern, which indicates bullish trend reversal. Traders can remain long with 18,200 stop loss in the Nifty.

Resistance for Nifty is seen at 18,650. 

BUY

NLC India

Last Close: Rs 90

Targets: Rs 99; Rs 107

Stop Loss: Rs 83

The stock price has broken out from descending triangle on the daily chart. The stock price has surpassed previous top of Rs 90 on the weekly chart. Volume haves been rising along with the price rise.

The primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart. The stock is placed above all important moving averages. Indicators like MACD, RSI and ADX have turned bullish on the daily chart.

BUY

Mazagon Dock Shipbuilders

Last close: Rs 878

Target: Rs 931

Stop Loss: Rs 826

The stock has formed “Doji” candlestick pattern on December 19, 2022 and reversed the trend towards north. The primary trend of the stock has been bullish as it has been holding above all important moving averages. Indicators like MACD, RSI and ADX have been showing strength on the weekly chart.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).