Nifty outlook & trading ideas: 24,000 key support; LTF, HAL top picks

Vinay Rajani of HDFC Securities has said that Nifty faces immediate resistance at 24,530, while 24,000 remains a key support. For trading, he has recommended buying L&T Finance and HAL stocks today.

Nifty View

 

Over the past five sessions, Nifty’s trading range has compressed to below 200 points, indicating a sharp drop in volatility and nearing extremely narrow levels.

 

For the past two sessions, price action has remained confined within Friday’s range, suggesting a choppy and non-directional market setup. Despite the consolidation, the short-term trend remains positive as the index continues to trade above its 20, 50 and 100-day EMAs. On the upside, immediate resistance is placed near 24,530, while 24,000 continues to act as a key short-term support.

 

Buy L&T Finance ₹306, SL ₹300, Target ₹315

 

The primary trend of L&T Finance (LTF) has been bullish as it has been trading above all key moving averages. The stock has witnessed a running correction in the recent past and has now formed a bullish “Hammer” candlestick pattern on the daily chart.  

 

Buy HAL ₹4,580, SL ₹4,500, Target ₹4,725

 

HAL stock price has surpassed its previous swing high resistance of ₹4,535 and closed above it. Price breakout is accompanied by a jump in volumes. Indicators and oscillators have turned bullish on the daily and weekly charts. 

 

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Disclaimer: This article is written by Vinay Rajani, senior technical and derivative analyst at HDFC Securities. Views expressed are his own. Readers' discretion is advised.