HDFC Securities recommends Buy on Triveni Engineering, NFL; check why

On the broader market outlook, Vinay Rajani the technical & derivative analyst expects the Nifty to move in the 17,842-176,84 range in the near term.

Nifty View

The Nifty ended in the positive for the second consecutive session on April 25 after facing selling pressure on intraday rallies. At close, Nifty was up 0.15 per cent or 25.9 points at 17,769.3. Volumes on the NSE were on the higher side aided by heightened activity in financials including Banks.

The Midcap index ended flat even as the advance decline ratio came in at 1.16:1. The Nifty formed a near doji formation on April 25 suggesting indecision after a day’s upmove. Follow through buying in index heavyweights is not happening to the extent expected. The Nifty could move in the range of 17,842-17,684 in the near term.

BUY

Triveni Engineering

Last close: Rs 290

Target: Rs 310; Rs 330

Stop-Loss: Rs 272

The stock has broken out from downward sloping trend line on the weekly chart. The stock has been finding support on its 200 days EMA. The stock has also broken out from bullish inverted head and shoulder pattern on the daily chart. Indicators and oscillators have turned bullish on weekly chart.

BUY

NFL

Last close: Rs 77.85

Target: Rs 83; Rs 88

Stop-Loss: Rs 73

Primary trend of the stock has been bullish as stock has been holding above its 50, 100 and 200 days EMAs. The stock price recently witnessed a sharp correction from Rs 89.70 to Rs 73.25 levels.

Post this move the stock found support on its 34 days EMA and resumed the uptrend. Fertilizer as a sector also started outperforming and same is expected to continue. 

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