Buy & Sell: Top picks by Vinay Rajani of HDFC Securities for February 19

Nifty ended the session with a minor loss of 14 points or 0.06 per cent, to close at 22945. It was yet another session, where Nifty managed to protect the support of 22800. Nifty made an intraday low at 22801 and recovered 170 points from there in the second half. Short term trend of the Nifty is still bearish as it is placed below all important short term moving averages.  For getting first sign of reversal, it needs to surpass 5 days EMA, placed around 23020 levels. Above 23020, Nifty could extend the pullback towards 23235. On the downside any level below 22725 could resume the down trend.

 

Buy Maruti (12778) | Target Rs. 13400 | Stop-loss Rs 12200 

Maruti Stock price has broken out the bullish “Flag” pattern on the daily chart. Stock has remained resilient in the falling markets. Primary trend of the stock is bullish as it is placed above all important moving averages. Indicators and oscillators have been showing strength in the current uptrend. 

Sell BSE (5160): | Target Rs. 4980 | Stop-loss Rs 5250 

BSE Stock price has broken down below its 50 days EMA support. Stock has confirmed lower top and lower bottom formation on the daily chart. Indicators and oscillators have turned bearish on the daily charts.

 

(Disclaimer: Vinay Rajani is a senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)