Stocks to buy: Vinay Rajani of HDFC Sec suggests buying these 2 stocks

Next resistance for the Nifty50 is seen at 24,545, which happens to be 61.8 per cent retracement of the entire fall seen from 26,277 to 21,743

Nifty View

Nifty is in continuation of an uptrend, as it is placed above all key moving averages. Next resistance for the index is seen at 24,545, which happens to be 61.8 per cent retracement of the entire fall seen from 26,277 to 21,743. On the downside, 24150 could offer immediate support for Nifty.

Buy Patanjali Foods (₹ 1,920): | Targets ₹ 2,033,  ₹ 2,145 | Stop-loss Rs 1,770

Patanjali Foods Stock has broken out from the symmetrical triangle on the weekly chart. Stock price is hovering near its 52 week and all-time highs. Stock is placed above all important moving averages. Weekly RSI is placed  above 50, indicating a sustainable up trend. Weekly MACD is placed above equilibrium and signal line. Stock price has started forming higher tops and higher bottoms on the daily chart.

Buy Alkem Lab(₹ 5,030): | Target ₹ 5,500,  ₹ 5,704 | Stop-loss Rs 4,920

Alkem Lab Stock price broke out from the inverted head and shoulder pattern on the daily chart and entered a correction phase. After correction, the stock price has formed a bullish “Hammer” candlestick pattern on the daily chart. Stock price is now placed above 20 and 50 days EMA. Daily RSI is placed above 50, indicating sustainable up trend. Daily MACD is also placed above the signal and equilibrium line. 

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