Nifty resistance at 21,193; LIC, India Cement top buy calls by Vinay Rajani

LIC's share has broken out from downward sloping trend line on the weekly chart

Nifty View

Nifty continued its upward journey and rose for the sixth consecutive session on Tuesday. Nifty registered a fresh all time high at 20,864.

Next resistance for the Nifty is seen at 21,193, which happens to be 61.8 per cent Fibonacci extension level of the swing seen from 16,828 (March 2023 Bottom) to 20,222 (Sep 2023 Top) and from 20,222 to 18,837 (Oct 2023 Bottom).

Support for Nifty has shifted up at 20,700.

Stock Picks

Buy Life Corporation of India | CMP: Rs 714 | Target: Rs 800, Rs 860 | Stop-loss: Rs 670

The stock price has broken out from downward sloping trend line on the weekly chart. It has recently surpassed the previous top resistance of 691. Price breakout is accompanied by a jump in volumes.

Primary trend for the stock has been bullish as it has been trading above all important moving averages. Indicators and Oscillators like DMI and RSI have turned bullish on the daily charts. PSU and Life Insurance sector stocks have started performing after long time.

Buy India Cement | CMP: Rs 254.20 | Target: Rs 282 | Stop-loss: Rs 237

The stock price has broken out from downward sloping channel on the weekly chart. It found support on its 100 week EMA and reversed north.

The stock is holding above its 20,50,100 and 200 DEMA, which indicates bullish trend on all time frame. Indicators and Oscillators like DMI and RSI have turned bullish on the daily charts. Cement Sector has started outperforming. 

Discalimer: Vinay Rajani is Senior Technical and Derivative Research Analyst. Views are own. He does not hold any of these stocks.