Hold Nifty longs with a stop at 19,276, suggests HDFC Securities

Among individual stocks, Vinay Rajani, technical & derivative analyst at HDFC Securities, recommends to Buy EIH and Doodla Dairy for up to 8 per cent upside.

Nifty View

In the second half of the session on Tuesday, Nifty recovered almost 100 points from the first half's low and ended the session near day's high. The Bank Nifty found support on its 200-DEMA and reversed north during the session. 

200-DEMA for Nifty and BankNifty are placed at 19,447 and 43,996 respectively. These levels could offer resistance for both benchmark indices. Existing longs in Nifty should be held with the stoploss of 19,276.

BUY

EIHOTEL (EIH)

Last price: Rs 238.05

Target: Rs 255

Stop-loss: Rs 231

On October 30, the stock broke out from the downward sloping trend line on the daily charts. On November 06, the stock price broke out from bullish “Flag” pattern on the daily charts, indicating continuation of an uptrend. 

The stock price has formed strong base in the zone of Rs 205-210 and bounced back. The stock is placed above 50-, 100- and 200-DEMA, indicating bullish trend on all time frames. Indicators and Oscillators like MACD, DMI and RSI have turned bullish on the daily charts.

BUY

Dodla Dairy 

Last close: Rs 737.90

Target: Rs 799

Stop-loss: Rs 710

The stock price has broken out from last 8 week's price consolidation. The stock price has closed above 50-days EMA decisively. Indicators and oscillators have turned bullish on the daily chart. 

The stock is placed above 20-, 50-, 100- and 200-DEMA, indicating bullish trend on all time frames.

(Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal).