Bias for Nifty likely to remain bearish below 17,210: HDFC Securities

Among individual stocks, the technical & derivative analyst from HDFC Securities recommends to Buy Mahanagar Gas and Dr.Reddy's Labs.

Nifty View

The Nifty has been moving in the narrow range for last nine trading sessions. During these nine trading sessions, the lowest level is 16,828, which can act as a strong support.

Any sustainable level below 16,828 on the Nifty, could intensify the selling pressure in the market. Trend of the Nifty would be considered bearish, unless Nifty surpasses the crucial resistance 17,210. 

BUY

Mahanagar Gas (MGL)

Last close: Rs 979

Target: Rs 1,025; Rs 1,050

Stop-Loss: Rs 945

The primary trend of the stock has been bullish, as it has been forming higher tops and higher bottoms on the weekly charts. On the daily chart, stock is on the verge of breaking out from “Flag” pattern.

The stock is placed above all important moving averages. Indicators and oscillators have been showing strength in the current uptrend.

BUY

Dr.Reddy's

Last close: Rs 4,541

Target: Rs 4,750; Rs 4,890

Stop-Loss: Rs 4,409

The stock is placed above all important moving averages, indicating bullish trend on all time frames. Pharma sector has started outperforming from last couple of sessions. Indicators and oscillators have been showing bullish trend. Volumes have been rising along with price rise. 

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