Buy Equitas Bank, RPG Life for up to 16% upside, recommends HDFC Securities

On the broader market outlook, Vinay Rajani the technical & derivative analyst says that the Nifty needs to breakout from the 18,669 - 18,888 range to gain momentum.

Nifty View

The Nifty showed a smart recovery on June 20 from morning weakness to end in the positive. The Nifty negated the Dark Cloud Cover bearish formation formed on June 19 by ending in the positive.

It has now formed a bullish piercing pattern. The index needs to break out of 18,669 - 18,888 band for showing acceleration in that direction.

The Nifty Smallcap index rose for the 7th session on the trot and this is the 13th consecutive week of rise for Smallcap Index. Strong breadth is the strongest factor in the current market trend. 

BUY

Equitas Bank

Last close: Rs 88.80

Target: Rs96; Rs 103

Stop-loss: Rs 83

The stock price has broken out from last 5 session's consolidation. The price breakout is accompanied with healthy volumes. Primary trend of the stock is bullish as stock is placed above all important moving averages. Indicators and oscillators on weekly charts have been showing strength in the current uptrend.

BUY

RPG LifeScience

Last close: Rs 932

Target: Rs 990; Rs 1,040

Stop-loss: Rs 886

On June 09 2023, the stock surged more than 10 per cent with significant jump in volumes. This move resulted in to bullish inverted head and shoulder pattern breakout on the weekly chart.

Post this breakout the stock went in to small consolidation but managed to hold its level above its 5 days EMA. Indicators and oscillators like RSI and MACD have been showing strength on the weekly charts. 

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