Nifty maintains bearish bias; Two stocks with up to 12% short-term gains

Nifty View

 

The Nifty broke a three-session losing streak, rising by 374 points or 1.69 per cent to close at 22,535. Despite this recovery of more than 950 points from yesterday’s low, the overall trend remains down, as the Nifty is still positioned below its 5-day exponential moving average (EMA). Support for the Nifty has moved up to 22,341, while resistance is placed in the range of 22,800-22,900. 

  Stock picks

 

Buy Hindustan Unilever (₹2,294) | Target ₹2,420 | Stop-loss ₹2,200

 

Stock price has surpassed the crucial resistance of 50 days EMA. Stock has also taken out the previous swing high resistance on the daily chart. Indicators and oscillators like moving average convergence divergence (MACD) and relative strength index (RSI) have turned bullish on the daily chart. 

 

Buy Aadhar Housing Finance (₹455): | Target ₹512| Stop-loss ₹411

 

Stock has broken out from downward sloping trend line on the weekly chart. Stock price has broken out from the consolidation on weekly charts. Stock is placed above all important moving averages. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is placed above equilibrium and signal line. Stock price has started forming higher top and higher bottom on daily chart. 

 

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