Hold longs on Nifty with a stop at 17,500: HDFC Securities

Among individual stocks, Vinay Rajani the technical & derivative analyst recommends to Buy Ircon International and ABFRL.

Nifty View

The Nifty has been witnessing running correction for last two trading sessions. The 50 days and 200 days EMA have been coinciding almost at the same point around 17,525. The 20 days EMA for Nifty is placed at 17,488.

Considering the overall trend, we advise holding Nifty longs with 17,500 stoploss on closing basis. Resistances for the Nifty are seen at 17,900 and 18,135. Market to remain stock and sector specific bullish for the coming days. 

BUY

Ircon International

Lastc close: Rs 61.15

Target: Rs 66; Rs 69

Stop-loss: Rs 54.5

The stock price has broken out from the last five trading session's consolidation. It has also broken out from symmetrical triangle on the daily chart. Price breakout is accompanied with jump in volumes.

Railway Stocks have been outperforming and same is expected to continue. Indicators and oscillators like RSI, MACD and DMI have turned bullish on daily charts.

BUY

ABFRL

Last close: Rs 223.90

Target: Rs 242; Rs 255

Stop-loss: Rs 210

On week ended April 06, 2023, the stock formed “Long Legged Doji” candlestick pattern on the weekly chart. Stock has formed this reversal pattern after healthy fall from 6 month's.

The weekly RSI has exited the oversold zone, which also adds the strength in the trend reversal. The stock has surpassed 20 days EMA resistance and has been sustaining above it.

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