Buy GMDC, Rites for gains up to 16%, recommends HDFC Securities

On the broader market outlook, Vinay Rajani the technical & derivative analyst says that the Nifty could trade in the range of 19,612 - 19,819 in the near term.

Nifty View

The Nifty made yet another all-time high on July 18 amidst some intra-day volatility. At close, Nifty was up 0.19 per cent or 37.8 points at 19,749.3. Volumes on the NSE were above the recent average. Broad market indices ended marginally in the negative even as the advance decline ratio fell to 0.69:1.

The Nifty closed lower than the opening levels, suggesting some intraday profit taking. It formed a high wave type pattern after a rise, hinting at some consolidation. The 19,819 - 19,612 could be the trading range for the Nifty in the near term.

BUY

GMDC

Last close: Rs 177

Targets: Rs 195; Rs 205

Stop-loss: Rs 164

The stock price has broken out from last 9 week's price consolidation with rising volumes. The stock is placed above all important moving averages, which indicates bullish trend on all time frames. Indicators and oscillators have turned bullish on weekly charts. PSU sector has been outperforming and same is expected to continue.

BUY

Rites

Last close: Rs 409.90

Targets: Rs 442; Rs 470

Stop-loss: Rs 366

On shorter time frame, the stock has broken out from the descending triangle. On longer time frame, stock price has broken out from cup and handle pattern on the weekly chart. Price rise in accompanied by jump in volumes, which confirms the bullish trend.

The stock is placed above all important moving average, indicating bullish trend on all time frames. Indicators and oscillators like MACD and RSI have turned bullish on its daily and weekly charts.

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