RVNL, Zensar Tech: Top two picks by Vinay Rajani of HDFC Sec for June 12

RVNL has retraced more than 61.8 per cent of the entire fall which was seen from the swing high of Rs 425 towards the recent swing low of Rs 312

Nifty erased all its gains in the last hour of the session on June 11 after making a top at 13:45 Hrs and ended little changed from previous day’s close. Nifty formed another high wave type candle formed besides the previous day’s candle. 

Markets seem to be consolidating and as the close has not been negative, we think some more up move is in the offing in the near term and Nifty could stay in the 23,411-22,930 band in this period.

Buy RVNL (CMP: Rs 390): | Target Rs 430| Stop-loss Rs 365

Stock has retraced more than 61.8 per cent of the entire fall which was seen from the swing high of Rs 425 towards the recent swing low of Rs 312, which indicates negation of a down trend. Stock is now placed above all important moving averages, which indicates bullish trend on all time frames.

Buy Zensartech (CMP: Rs 692): | Target Rs 795 | Stop-loss Rs 635

Stock price has broken out from the triple top resistance of Rs 660. Price rise was accompanied by healthy volumes. Stock price has been trading above all important moving averages, indicating bullish trend on all time frames. 

Indicators and oscillators have turned bullish on weekly and monthly charts. Stock price has been forming higher tops and higher bottoms on the weekly and monthly charts.

(Vinay Rajani, CMT, is a senior technical & derivative analyst at HDFC Securities. Views expressed are his own)