Hold Nifty Longs with stop loss of 19,400, says HDFC Securities

Nifty View

Nifty has been rising for last three consecutive sessions. Nifty has surpassed the 19,500 resistances, derived from downward sloping trend line on the daily chart. On the weekly charts, Nifty has broken from the bullish "Flag" pattern, which indicates continuation of an uptrend. Traders are advised to hold Nifty longs with 19,400 stoploss. At present more than 87 per cent of stocks are trading above their 200-DMA in NSE500, which indicates strong market breadth.

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Buy Bank Of Maharashtra (CMP: Rs 41.80) | Target: Rs 48 | Stop-loss: Rs 36.90

The stock price has broken out from upward sloping trend line on the weekly chart. In the month of July, the stock broke out from bullish inverted head and shoulder pattern on long term charts. In the month of August, the stock outperformed the PSU bank index and remained near its 52 week high. It is placed above all important moving average, indicating bullish trend on all time frames.
 

Buy IRCTC (CMP: Rs 701.80) | Target: Rs 748 | Stop-loss: Rs 666

The "Cup and Handle" Pattern breakout is observed on the daily chart. Price breakout is accompanied with rising volumes. The stock price is trading above its 20, 50 and 200 DMA, indicating bullish trend on all time frame. The stock price has broken out from bullish inverted head and shoulder pattern on the weekly chart. Indicators and Oscillators like MACD and RSI have turned bullish on the daily charts.

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Disclaimer: Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC  Securities. Views expressed are personal