Nifty swings above 20-DEMA; check key support, resistance levels here

Nifty50 outlook: Downward gap zone of 22,503 and 22,427 is expected to remain resistance for the Nifty in the near-term

Nifty Outlook
The Nifty index rose for the third session on the trot, to close at 22,368, with a minor gain of 0.14 pr cent. From the recent swing low of 21,777, Nifty has recovered 670 points. The Nifty index has reclaimed its level above 20-DEMA, placed at 22,309. Nifty Smallcap 100 index, meanwhile, rose more than 1 per cent and registered fresh all time high at 16,702.

Downward gap zone of 22,503 and 22,427 is expected to remain resistance for the Nifty in the near-term. Support for the Nifty has now shifted up to 22,200.

Stock recommendations
Buy Kirloskar Oil Engine (CMP: Rs 936) | Target: Rs 1,090 | Stop-loss: Rs 863

The stock price has broken out from the downward sloping trend line on the daily chart. The price rise is accompanied by rise in volumes. Primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart. The stock is placed above all important moving averages, indicating a bullish trend on all time frames. Indicators and oscillators have been showing strength in the current uptrend.
 

Buy BDL (CMP: Rs 1,924) | Target: Rs 2,199 | Stop-loss: Rs 1,750

The stock price has broken out from the consolidation which held for last many weeks. The price rise is accompanied by rise in volumes. Primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart. The stock is placed above all important moving averages, indicating a bullish trend on all time frames. Indicators and oscillators have been showing strength in the current uptrend.

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Disclaimer: Vinay Rajani is CMT, Senior Technical and Derivative Research Analyst at HDFC Securities. Views are his own.